Copper Prices Soar to Record High Amid Tightening Supplies

Copper prices have hit an all-time high on the London Metal Exchange (LME), reaching $14,533 per ton. This surge is driven by tightening supplies outside of the US, a softer dollar, and strong fund buying.

The benchmark three-month futures contract has seen significant growth, with copper up 16% year-to-date. According to the LME's official prices, cash copper was quoted at $14,539-$14,540 per metric tonne on September 7, while the three-month copper contract stood at $14,443-$14,448 per tonne.

Pareen Pattni, Commodity Research Analyst at Motilal Oswal Financial Services, notes that 'Copper has hit fresh record highs, trading 16 percent higher YTD, as the market increasingly focuses on tightening supplies outside the US. The rally has also been supported by a softer dollar and strong fund buying.'

The falling copper inventories are signaling market tightness, which could drive prices even higher.