Copper Prices Reach Record Highs on Supply Squeeze

Copper prices have surged to record highs as nearby market conditions tighten due to supply shortages. According to ING analysts Ewa Manthey and Warren Patterson, LME Copper has pushed above $14,000/t, approaching a new record.

The rally is being driven by tightening nearby market conditions, with the LME copper tom-next spread surging to a premium of $75/t yesterday, marking the widest spread since January. The cash/3m copper spread traded at a premium of $545/t yesterday, highlighting tightness in spot supplies.

Ongoing shipments to the US ahead of a potential refined copper import tariff, combined with Chinese buying, have reduced available inventories in the LME warehouse network and tightened prompt supply. While LME stocks saw a modest increase recently, inventories remain near multi-month lows.