Copper Rises Further Amid Ongoing Supply Shortages

Copper prices have continued to rise after reaching a record high on Tuesday. Despite an easing of last week's severe market squeeze, short-term supplies remain tight, contributing to the metal's surge.

The London Metal Exchange has seen copper prices climb about 16% this year as traders ship large volumes to the US, depleting stockpiles elsewhere at a time when mines are struggling to meet growing demand.

This has led to an unusually wide gap between spot and futures prices, with the spread narrowing only slightly since last week's blowout. The current gap is still significantly higher than normal, standing at around US$156 per ton as of Tuesday.