Metals: Copper flat as China caution outweighs US stockpiling, Goldman upgrade

Goldman Sachs group

Tue 05:04

Oct 20 (Reuters) - Copper held steady on Tuesday as cautious buying in China at high prices offset Goldman Sachs' raised price forecasts and swelling US inventories ahead of potential import tariffs.
Three-month copper on the London Metal Exchange CMCU3 was flat at $14,339.50 a metric ton, while the most-traded November copper contract on the Shanghai Futures Exchange SCFcv1 fell 0.53% to 109,270 yuan ($16,360) a ton, as of 0330 GMT.
Goldman Sachs raised its end-2026 copper price forecast to $14,700 a ton and its 2027 average to $15,400, citing weaker mine supply and tightening markets outside the United States. It expects deficits outside the US of 950,000 tons in 2026 and 220,000 tons in 2027.
Comex copper inventories reached 791,679 short tons, or about 718,200 tons, on Monday amid stockpiling ahead of potential US import tariffs. 
The LME approved Owensboro, Kentucky, as another US delivery point. 
LME copper inventories MCUSTX-TOTAL rose 2.99% to 232,175 tons on October 16, according to the exchange's latest report on its inventories.
Copper also won 50% of votes in an LME seminar poll on the metal with the most price upside, amid expectations for AI-related demand.
In China, the Yangshan import premium SMM-CUYP-CN, a gauge of Chinese consumers' appetite for imported materials stood at $137 a ton on Monday, while domestic spot premiums SMM-CU-PND fell 115 yuan to 710 yuan a ton.
Chinese broker Everbright Futures said cautious purchasing at high prices and uncertainty over US tariffs could keep copper trading within a range.
BHP BHP.AX reported a 19% drop in quarterly copper output to 400,700 tons after disruptions in Chile and Australia, but maintained its annual guidance.
Among other LME metals, aluminium CMAL3 fell 0.25%, zinc CMZN3 rose 0.20%, lead CMPB3 gained 0.08%, nickel CMNI3 added 0.07% and tin CMSN3 slipped 0.18%.
On the SHFE, aluminium SAFcv1 lost 0.24%, zinc SZNcv1 rose 0.02%, lead SPBcv1 gained 0.49%, nickel SNIcv1 climbed 0.64% and tin SSNcv1 advanced 0.68%.

($1 = 6.6789 Chinese yuan renminbi)

 (Reporting by Dylan Duan and Lewis Jackson; Editing by Jochelle Mendonca)
 ((dylan.duan@thomsonreuters.com;))