Copper Prices Surge as Supplies Outside US Dwindle

Copper prices are heading towards a record high as traders focus on tight supplies outside of the US. The market is driven by concerns over shortages and elevated premiums for nearby contracts against longer-dated forwards.

The London Metal Exchange's benchmark copper price rose to $14,430 per metric ton, its highest level since January when it hit an all-time peak of $14,527.50.

Comex copper stocks in the US are at a record high of 766,795 short tons, but traders have been shipping copper out of the country since President Donald Trump mooted import tariffs in February last year.

The Shanghai Futures Exchange's warehouse stocks are also low, down 85% since March and at their lowest since January 2024. This suggests that supplies outside the US are tight.