Copper Prices Surge Towards Record High on Falling Inventories

Copper prices have risen for a sixth consecutive day, heading towards a record high as inventories fall and pre-holiday buying signals tightening supplies in China's physical market.

The metal is experiencing its longest run of gains in four months. Import data suggests that much of the imported copper has gone directly to fabricators rather than warehouses, keeping spot supplies constrained, according to Shanghai Metals Market (SMM).

Demand for copper is also getting a seasonal boost ahead of the Mid-Autumn Festival and National Day holidays, SMM said in a note. Copper cathode inventories in Shanghai, a major trading and consumption hub, fell to 43,900 tons, the lowest since 2023, according to weekly data released by SMM on Monday.

Copper prices hit an all-time high of $14,875 a ton on Sept. 10, but have since experienced turbulence due to growing doubts about the timeline for potential tariffs and hawkish messaging from the Federal Reserve.