Copper Prices Soar as Tight Supply Drives Nine-Week Rally
Copper's price surge has continued for nine consecutive weeks, driven by dwindling inventories and a weakening US dollar. Copper stocks on the Shanghai Futures Exchange have plummeted to their lowest level since January 2024, falling 13% in just one week to 63,000 tons.
This supply shortage is causing prices to fluctuate wildly, with near-term contracts becoming more expensive than later ones. The US dollar's decline has also made copper cheaper for buyers using other currencies, further fueling the rally.
The market is taking note of this shift in availability, with time spreads and physical premia signaling a tightening market. If stockpiling continues to pull metal onto COMEX, the global supply shortage may become more pronounced, raising costs for short positions and making LME prompt pricing even more sensitive.