Copper Prices Surge Towards Record High Amid Tight Supplies Outside US
Copper prices are heading towards record highs due to concerns over tight supplies outside the US. Traders have been shipping large amounts of copper to the US since President Donald Trump mooted import tariffs in February last year, leaving stocks at a record 766,795 short tons or 695,624 metric tons. The softening dollar has also contributed to the positive sentiment.
The premium for cash over three-month forwards has climbed above $430 a ton, the highest since 2021, while copper prices on the Shanghai Futures Exchange are in backwardation. This suggests that the industry in top consumer China is concerned about supplies. The stocks in warehouses monitored by the Shanghai Futures Exchange have decreased by 85% since March and stand at their lowest since January 2024.
Albert Mackenzie, analyst at Benchmark Mineral Intelligence, said 'It's hard to know what will happen on tariffs but the longer there is uncertainty the longer prices will remain elevated as material flows to the U.S.'