Copper Price Surges to Near-Record Levels Amid Supply Risks

The copper price has surged to near-record levels due to supply risks and tightness in the market. Copper futures on Comex climbed 1.1% to $6.8370/lb, just 1% away from their record settlement, while SHFE warehouse stocks fell by 70% since June to 43,900 t.

Cash copper on the LME has flipped into a $62/t backwardation, indicating severe near-term tightness. Cancelled LME warrants have risen to 122,150 t, leaving only 133,725 t available for trade.

Supply risks remain elevated due to disruptions at Grasberg and Kamoa-Kakula, removing around 600,000 t from expected 2026 mine output. Sprott warned that global production could contract for the first time since 2017.