Copper Prices Plummet Below $14,000/t as LME Stocks Soar
Copper prices on the LME have retreated sharply, falling below $14,000/t as a significant increase in on-warrant inventories eased the previous supply squeeze. According to ING's commodities team, this rise in stocks has alleviated tightness in the market after inventories were depleted by strong shipments to the US driven by tariff-related arbitrage opportunities.
The LME stock jump was substantial, with on-warrant copper inventories rising by 20,025 tonnes, the largest daily increase since 7 April. This growth extended gains for a sixth consecutive session to 123,100 tonnes.
As a result of the improved supply situation, the LME cash/3M copper spread narrowed to $248/t, while the tom-next spread retreated after recently reaching levels last seen during the 2021 copper squeeze. Speculators also trimmed their net long copper positions by 6,340 lots to 53,914 lots.