Copper Prices Soar on Tight Supplies Outside US Amid Global Economic Uncertainty
Copper prices have seen a significant rally in recent months, driven largely by tight supplies outside of the United States. According to Kedia Advisory, copper has gained 25% since reaching a three-month low in March, with metal flows towards the US amid tariff speculation tightening availability elsewhere.
The LME cash-to-three-month premium narrowed sharply to $40 per ton from more than $500 in mid-August as warehouse inflows eased immediate supply concerns. Inventories climbed to 797,275 short tons, while SHFE inventories stood near 63,000 tonnes, down 85% from the mid-March peak and the lowest since January 2024.
China's imports of unwrought copper and products declined in August, with a 6.7% year-on-year decrease in January-August imports to 3.30 million tonnes. Chilean copper output fell 9.4% year-on-year in July due to severe weather disruptions.