Copper Hits Record High on Weak Supply Outside US
Copper prices have surged to a record high, driven by tight supply outside of the US and weak mine output. The three-month copper contract on the London Metal Exchange (LME) gained 1.1% to USD14,674 a metric ton by 1040 GMT, surpassing its previous record set on Monday.
The LME copper price has risen 18% this year, largely due to a large flow of metal moving to the US in anticipation of tariffs being imposed there on refined copper. Ole Hansen, head of commodity strategy at Saxo Bank, attributed the strong market tightness to miners struggling to keep pace with robust demand heading into the annual peak-demand season in China.
Copper stocks in LME-registered warehouses have shed nearly 40% since late May, while SHFE inventories stood at around 63,000 tons last week, down 85% from a mid-March peak and the lowest since January 2024. The still-elevated COMEX-LME price spread suggests physical copper continues to flow into the United States, deepening supply tightness in markets outside the US.
Other metals, such as zinc, aluminium, lead, nickel, and tin also saw gains on the LME, with prices rising by 0.5%, 0.4%, 0.2%, 0.8%, and 0.3% respectively.