Copper near record highs but inventory overhang clouds near-term outlook, says UBS

Copper has rebounded close to record highs above $13,000 per tonne following signs of Middle East de-escalation and the potential reopening of the Strait of Hormuz, but UBS warns that elevated global inventories and mixed demand signals mean the near-term price outlook is balanced rather than bullish. The Swiss bank remains structurally positive on copper over the medium term, arguing that the fundamental case based on supply constraints and resilient energy transition demand is unchanged and arguably more compelling in the wake of the conflict.