According to LME data, copper stocks increased to 254,700 tons, the highest level since November 2015.
After recording a rise of 9.1% in March, the current copper has wiped out all the gains in the previous year, as investors expect supply to exceed demand. Among the six base metals in the LME market, copper performed the worst.
Mike Dragosits, senior commodity strategist at TD Securities, said: “Increases in inventory are never good for prices. Coupled with the slowdown in China’s economic growth, we believe that the market is currently oversupplied.”
Soochow Futures, a trader said, traders will be cautious about the rise in copper prices, because LME stocks have increased and there is no evidence that buyers will increase purchases before peak demand in the fall.
Link to this article：Oversupply! Copper is expected to be the worst performing metal this year
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