Copper prices rebound amid shortages of material and inflationary concerns

Copper prices rebounded this Monday after two sessions of losses, given investors’ concern about low inventories and rising global inflation.

At 1000 GMT, three-month copper on the London Metal Exchange (LME) was up 1% at $ 9,800 a tonne after falling 1.3% on Friday.

“There is demand from a physical tightness perspective, but also from an inflation perspective. Inflation concerns are still here, if anything they are rising”Said Ole Hansen, Head of Commodity Strategy at Saxo Bank in Copenhagen.

Investors often buy commodities as a hedge against expectations of rising inflation.

LME copper values ​​have declined from a five-month high of $ 10,452.50 reached a week ago, largely due to the liquidation of new long positions, Hansen added.

“From a technical perspective, we have bounced off a rather interesting area, which could indicate that we have seen most of the correction.”.

Copper inventories in warehouses on the Shanghai Futures Exchange have fallen to 39,839 tonnes, a 12-year low, while copper stocks on the LME have declined 37% in the past two months to 159,800 tonnes.