Copper heads for third weekly decline as inventories stack up

Copper headed for a third weekly loss, as global exchange-tracked inventories continued to build on weaker demand from industrial users.

Futures were little changed on the London Metal Exchange on Friday, on track to finish the week slightly lower for the longest losing run since 2024. Stockpiles in warehouses tracked by the bourse have risen to an 11-month high, an indication elevated prices are crimping physical demand.

The metal hit a record in January on a wave of speculative buying, but has been pressured this week by indications Federal Reserve officials may keep policy tighter than expected. Minutes from the bank’s January meeting on Wednesday showed policymakers were surprisingly wary about cutting rates this year.

Trading volumes remain thin, with markets in China closed for the Lunar New Year break, and investors will be keenly watching the reopening next week. Demand in the top copper consumer has been weakening since September, resulting in a rise in domestic inventories, according to Morgan Stanley.

“Copper has been remarkably resilient, with macro factors still in the driving seat,” Morgan Stanley analysts, including Amy Gower, wrote in a note. “If inventories do carry on rising, investors may give weak Chinese copper demand more weight.”

Three-month futures were nearly flat at $12 830 a ton on the LME as of 11:15 a.m. in London. In other metals, aluminum added 0.7%, while zinc was little changed.

© 2026 Bloomberg

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