Earlier this week, prices broke through historical highs, but then copper prices pulled back. Currently, the fundamentals are not keeping up with the price movement, and it looks like the market is entering a consolidation phase.

There are obvious changes in inventory levels. Data from monitored exchanges show that inventories increased by 54,000 tons this week, reaching a total of 843,300 tons, the highest level in nearly eight years. All exchanges are seeing increases, with the Shanghai Exchange experiencing the largest growth, adding 33,000 tons in a week to reach 213,500 tons, also a nine-month high. Meanwhile, inventories at the COMEX exchange are also continuously flowing in, reaching a new high of 488,700 tons. High inventory levels often indicate ample market supply, which could put pressure on future price movements.