The Chinese Manufacturing PMI rose to 50.3 in June (May: 50.0), signaling a positive recovery in the industry. Positive developments include the recovery in new orders to 51.2 (May: 49.9), output growth to 51.4, and export orders (50.1). Rising purchasing activity (51.4) confirms increasing industrial activity. Overall, Chinese demand for copper is currently slightly bullish.
Copper inventories on the LME and SHFE exchanges are currently declining. LME inventories fell from around 376,800 metric tons at the beginning of June to 333,100 metric tons at the end of June 2026 (-11.6%), while SHFE inventories declined from 143,900 metric tons to 135,700 metric tons in the week ending June 26 (-5.7%). The drawdown in LME and SHFE inventories points to solid physical demand and a tightening copper market. Another signal is the high proportion of canceled LME warrants (approx. 37–39%). This suggests that copper could soon be withdrawn from warehouses. This is a bullish factor for copper.
From a technical analysis perspective, this $COPA (-1.97%)/$GOLD ratio has crossed a long-term support line. The ratio has already reached the resistance level, which historically has been a turning point. Therefore, entering a long position in copper would be worth considering!
