Aurubis CEO: US Demand to Cut Comex Copper Stockpile

Key Projections on Copper Inventories

Aurubis CEO Toralf Haag predicts that strong local demand will soon reduce the substantial 532,000 metric ton copper stockpile currently held in U.S. Comex warehouses. This forecast comes amid shifting industrial needs and follows a period of inventory buildup.

Current Market Situation

The Comex copper inventory, which accounts for nearly a quarter of annual U.S. consumption, was accumulated by traders in anticipation of potential tariffs. Despite peaking at 546,000 tons in February, these reserves have yet to see a significant decline as market arbitrage opportunities re-emerged.

Economic and Industry Impact

While demand from Germany's automotive sector is weakening, Aurubis notes that industries like power, construction, and especially data centers are providing compensatory demand. The company estimates that 1,000 new data centers planned globally will create a substantial new need for copper.

Outlook

The expected drawdown of Comex copper stocks points to a rebalancing of the U.S. market. Future inventory movements will be influenced by the pace of local industrial activity and Aurubis's expansion plans, including a new recycling facility in Georgia set for completion in September.

FAQ

Q: Why is there a large copper stockpile in Comex warehouses?
A: Traders moved the metal to the U.S. last year in anticipation of potential tariffs, creating a large reserve.

Q: What is driving the expected demand for copper?
A: Strong local demand in the U.S., particularly from the power, construction, and emerging data center sectors.

Source: Investing.com