Copper Squeeze: LME Spreads Hit Widest Since 2021 Amid Inventory Drawdown

Copper prices are experiencing a significant squeeze on supply as London Metal Exchange (LME) copper spreads hit their widest levels since 2021. The one-day spread has reached $110, with the front-month spread climbing to $370 per ton and the cash-to-three-month spread widening to $434 per ton.

The prolonged drawdown in stockpiles is a major contributor to this tight market, with LME copper inventories falling for 42 consecutive days. Total stockpiles now stand at 204,975 tons, with nearly half already scheduled for withdrawal due to arbitrage flows toward the United States.

Copper-related ETFs have rallied sharply over the past 30 days, but investor capital remains concentrated in larger funds. The Global X Copper Miners ETF (COPX) has drawn roughly $2.5 billion in net inflows, bringing its assets to almost $8 billion.