Copper Nears Record High on Tight Supplies Outside US

Copper prices continue to rise, heading towards a record high as concerns over tight supplies outside of the US drive up demand. Benchmark copper on the London Metal Exchange has reached $14,430 per metric ton, the highest since January when it hit an all-time peak of $14,527.50.

Traders and producers have been shipping copper to the US since President Donald Trump mooted import tariffs in February last year, leading to a record high of 766,795 short tons or 695,624 metric tons in Comex copper stocks. However, elevated premiums for nearby contracts against longer-dated forwards have attracted some copper back to the LME.

Meanwhile, stocks in warehouses monitored by the Shanghai Futures Exchange have dropped to their lowest since January 2024, at 63,000 tons, down 85% since mid-March. This indicates tight supplies outside of the US and is reflected in copper prices on the ShFE being in backwardation, suggesting industry concerns over supplies in top consumer China.

Other base metals such as zinc, aluminium, lead, tin, and nickel are also seeing price increases due to tight supplies and a softer US currency. Zinc has risen 0.8% to $3,976 per ton, close to its highest since May 2022 at $3,990.