Copper Prices Soar as Global Deficit Looms
Copper prices continue to rise as supply tightness worsens, with the London Metal Exchange (LME) copper spot premium hitting its highest level since 2021. According to Jefferies' report, major miners covering more than half of global copper supply posted production declines in Q2, exacerbating near-term supply tightness.
The LME copper spot premium widened Monday to $478 per ton above the three-month contract, a rare and severe indicator of physical supply shortages. This situation is attributed to the flow of copper into the United States due to distorted arbitrage logic caused by tariff policies.
Jefferies projects a global copper deficit of 442,000 tons in 2026, widening to 782,000 tons by 2030, as sustained demand growth outpaces supply. The analysts maintain a bullish medium-term outlook on copper, driven by increasing demand from electric vehicles, renewable energy, and power grid construction.