Commodities
Copper Prices Soar on Supply Shortages and Weakening Mine Production
Copper prices surged on Thursday, climbing nearly 3% to settle around 2.2% higher at $6.45 per pound due to tightening global supplies and concerns over weakening mine production.
Market fundamentals indicate a shortage of copper, with LME copper contracts for immediate delivery trading above three-month futures, creating a backwardation structure that reflects strong near-term demand and limited supply.
The decline in exchange inventories by more than 10,000 metric tons this week and the recent surge in import premiums in China to their highest level since 2022 highlight robust physical demand in the world's largest copper-consuming nation.