Copper Prices Soar Towards Record as Supply Strains and Geopolitical Tensions Rise

Copper prices have been rising towards record territory due to supply strain and intense competition for metal between major producers.

The US-Iran ceasefire expired on August 17, with fresh US sanctions expected. The situation has contributed to higher oil prices and increased geopolitical tensions in the region.

Saxo Bank reports that copper is trading up 1.45% at $14,365 per ton in London, driven by major producers struggling to meet production targets and intense competition for supply between the US and China.

The premium for spot delivery in London over three-month metal has risen nearly $500 per ton, highlighting acute nearby tightness.