Copper: Complex under pressure - ING

LME Copper and Aluminium pared weekly gains as China's economy cooled more than expected in October, ING's commodity experts Ewa Manthey and Warren Patterson note.

Copper stocks decline for the fourth consecutive week

"Record-low investment and slower industrial growth compounded already weak consumer demand. Copper saw a little more than a 1% weekly gain in London, extending a year-to-date rally of over 20%. This is being driven by supply disruptions and trade risks linked to potential US tariffs. Some relief emerged as Freeport-McMoRan resumed partial operations at Indonesia's Grasberg mine after a fatal accident halted output in September."

"Aluminium held modest weekly gains, supported by concerns that Chinese smelters are nearing government-imposed capacity limits, constraining supply. Primary Aluminium output in October reached 3.8mt (+0.4% year-on-year), but fell 9% from September."

"The latest data from the Shanghai Futures Exchange (SHFE) shows weekly inventories for base metals -- except Copper -- rose over the reporting period. Copper stocks declined for the fourth consecutive week, down 5,628 tonnes to 109,407 tonnes as of Friday. Aluminium inventories increased by 1,564 tonnes to 114,899 tonnes after four weeks of declines. Lead stocks rose by 4,208 tonnes for a second straight week to 42,790 tonnes. Nickel and zinc inventories also climbed, reaching 40,573 tonnes (+9.1% week on week) and 100,892 tonnes (+0.7% WoW), respectively."