Copper Slides to Multi Month Low on Rising Inventories in China

Inventory Builds and Supply Dynamics

Chinese refined copper output is projected to rise by 5% this year, following a massive 10% increase in 2025. This rising supply, coupled with increasing stockpiles in LME warehouses in Asia, has temporarily offset the structural demand from AI and grid upgrades.

Long Term Infrastructure Bid

Despite the current weakness, the 'electrification of everything' remains the primary long-term tailwind. Strategic buying from technology infrastructure funds is expected to provide support if prices test the $5.50 support level.