Copper Prices Soar to Near-Record Highs Amid London Warehouse Stock Crunch

Copper prices have surged to near-record highs due to tight supplies and low inventory levels in London Metal Exchange (LME) warehouses. The August contract on the LME traded at a premium of $370 per tonne over September futures, the widest one-month spread since 2021's squeeze that forced the exchange into emergency intervention.

The cash-to-three-month spread reached $434 per tonne, a five-year high, with cash copper changing hands at a record near $14,500 per tonne. LME stockpiles fell for the 42nd straight day to 204,975 tonnes, nearly half of which is earmarked for withdrawal.

Analysts and traders predict fresh all-time highs above $14,500 per tonne, citing the market's acute sensitivity to supply disruptions. The Congo ban on concentrate exports has exacerbated the shortage, while the US tariff decision remains a directional catalyst.