Copper Squeeze Intensifies on LME as US Tariff Uncertainty Persists

Copper prices are surging towards a record on the London Metal Exchange, with three-month futures climbing as much as 1.7% to $14,396 a tonne on August 17.

The market's warning lights are flashing brighter by the hour, with the prompt spread blowing out to an extreme $543.50 a tonne backwardation, the widest gap since the 2021 squeeze.

According to David Wilson, head of metals strategy at BNP Paribas SA, 'there seems to be momentum for it to get there… It's moving into overbought territory but I don't know if that means anything at the moment, given how tight it is.'

The supply squeeze is visible in the warehouse data, with LME-tracked inventories shrinking to just above 200,000 tonnes, the lowest since February.