Copper Prices Soar to Two-Month High Amid Low Inventories and Iran Hopes

Copper prices surged to a two-month high on Tuesday, surpassing $14,000 per metric ton due to dwindling inventories and hopes for a resolution in the Iran conflict. Benchmark three-month copper on the London Metal Exchange jumped 1.3% to $14,053 after the release of LME stocks data.

The available inventory at LME warehouses dropped to just 94,200 tons, less than a day's worth of global consumption. This led to a significant premium in the cash-to-three-month spread, reaching $105 per ton, the steepest since January.

Copper withdrawals from LME warehouses were mostly from the U.S. storage hub of New Orleans, where metal can be transferred to the COMEX exchange for a premium. COMEX holds more than double LME and Shanghai Futures Exchange copper inventories combined at 650,736 metric tons.