Copper Prices Surge Near Record Levels Amid Supply Squeeze

Copper prices have surged to nearly record levels due to a relentless squeeze in near-term supply. The London Metal Exchange (LME) has seen its spot copper price rise by almost 2% on Monday, reaching US$14,542 per tonne.

This is just shy of the all-time high set in January and marks another milestone in the ongoing supply crunch. The benchmark three-month contract remains largely unchanged at around US$14,160 per tonne, widening the premium buyers pay for immediate delivery.

The cash premium over three-month copper has surged to its widest since 2021, reaching US$545 per tonne. This reflects a sharp depletion of copper inventories in LME-registered warehouses as traders compete for immediate supply while metal continues to be drawn towards the US ahead of a potential tariff decision.

ING commodities strategist Ewa Manthey noted that the elevated premium for near-term delivery 'points to continued scarcity of available metal.' She expects these supply constraints to keep the market well supported in the near term, particularly if demand remains resilient.