Copper Prices Soar as LME Stock Worries Take Hold

Copper prices have extended their winning streak into another week, driven by concerns over London Metal Exchange (LME) stock levels. A new wave of warrant cancellations has reduced the available copper in LME-registered warehouses to just 107,050 metric tons from 166,775 a week earlier.

This development has tightened near-term supply and supported prices, according to CRU, a commodities research firm. The market is also watching where the metal is going, with worries that copper is shifting out of LME and Shanghai Futures Exchange warehouses and into US storage ahead of a potential US tariff on refined copper imports.

The impact of this shift could be significant, as it would push physical premiums higher for manufacturers and traders who need immediate delivery. The LME's available stockpile is what traders price day to day, and a drop in 'available' stock matters because it's the deliverable metal that anchors the LME market.