Copper Prices Soar as Global Deficit Looms
Copper prices are surging due to a shortage of deliverable LME inventories in Europe and other regions. According to a report by Jefferies, major miners covering 55% of global supply saw their Q2 copper production decline by 3.9% year-on-year, weighed down by operational disruptions and declining ore grades.
The firm believes that supply risks are clearly skewed to the downside, forecasting a global copper deficit of 442,000 tonnes in 2026 that will continue to widen. The LME copper cash premium has widened to its highest level since 2021, while major miners saw a significant year-on-year decline in Q2 output.
Signals from both the supply and demand sides of the copper market are tightening in tandem. On Monday, the LME cash premium hit a new high since 2021, with copper prices up by nearly 16% year-to-date and pushing them closer to historic highs.