Congo Copper Ban Boosts LME Price to Six-Month High

Copper prices rose on Friday due to supply concerns and tight inventories. Benchmark three-month copper on the London Metal Exchange was up 0.3% at $14,141 a metric ton by 0850 GMT. This sets it up for its strongest week in almost three months, with a potential gain of 2.5%. The metal touched a six-month high of $14,369.50 on Thursday after the Democratic Republic of Congo banned copper concentrate exports.

Low inventories and tight concentrate availability are contributing to the bullish market backdrop. Available LME copper stocks declined to 92,900 tons, the lowest since January. This is following a further 1,775 tons of warrant cancellations, orders to withdraw metal from warehouses, mostly in Kaohsiung.

The cash-to-three-month spread remained in steep backwardation at $119 a ton, indicating near-term tightness. Shanghai Futures Exchange copper stocks nudged up 1.1% over the past week but remain at a historically low 70,116 tons. COMEX copper stocks rose for a 34th consecutive day to 654,571 tons as metal flows to the country ahead of a possible tariff on imports.

U.S. President Donald Trump is expected to attend a round table with top mining executives to discuss expanding domestic and allied supplies of critical minerals. The session may impact global copper markets in the long term.