On August 19, LME copper prices took a sharp downward turn following the close of Shanghai copper trading. The metal had been fluctuating around $13,960 per tonne during the morning session, briefly touching levels above $13,980 before swiftly reversing course and breaking through the $13,900 support level, with intraday lows approaching $13,880 per tonne.

Inventory data revealed a substantial build-up in LME copper stockpiles, which climbed to 235,975 tonnes on August 18—an increase of 12,425 tonnes from the previous session. This surge was driven by 17,000 tonnes of inflows against 4,575 tonnes of outflows. Concurrently, copper cancelled warrants declined to 77,225 tonnes, down 18,650 tonnes day-on-day, pulling the cancelled warrants ratio back to 32.73%.

The combination of rising LME copper inventories and falling cancelled warrants points to greater availability of deliverable material at the exchange, exerting downward pressure on elevated copper prices. After encountering firm resistance around the $14,000 per tonne threshold during the session, London copper prices retreated quickly, with market participants now keeping a close watch on inventory dynamics and speculative sentiment at these higher price levels.