High US warehousing stocks weigh on copper industry
The copper industry continues to contend with a US market that is saturated with metal and ever-rising warehousing stocks, even in the face of a roaring economy, prices maintaining last year's gains and premiums starting to show some vigor.
One of the overarching themes over the past few years has been the sheer amount of copper cathode flowing into CME Group warehouses.
CME copper stocks stood at 220,449 short tons at the close of business on Monday January 29, the highest total since March 2014 and more than triple the level recorded on November 8, 2016, when President Donald Trump won the US election, according to data compiled by American Metal Market.
In fact, average stocks have risen every month since June 2016.