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Royal Bank of Canada (RBC) has maintained its bullish stance on copper prices despite a recent rise in global inventories, citing strong demand from green energy and industrial sectors. While copper stocks have increased by 8% year-to-date, the bank argues that supply constraints, particularly in top producers like Chile and Peru, will outpace inventory growth. Current prices remain near $8,200 per ton, supported by long-term contracts and infrastructure spending in the U.S. and China. This outlook is significant for commodity traders and investors, as copper is a critical input for renewable energy projects and electric vehicles. The divergence between rising inventories and stable prices highlights market confidence in structural demand growth. Traders should monitor upcoming LME inventory reports and Chinese manufacturing data for potential price catalysts. For Gulf investors, the copper market's resilience offers opportunities in diversified portfolios, especially as Saudi Arabia's NEOM and other infrastructure projects increase metal demand. Key risks include U.S. interest rate policy and potential supply disruptions in South America. The coming months will test whether demand fundamentals can sustain the current price level.
