Copper Supply Squeeze Intensifies as Equities Lag Behind

Copper's physical market is experiencing an increasingly severe supply squeeze, despite the metal price rising by 4.3% to US$6.73/lb over the week.

The disconnect between copper prices and mining equities has widened, with copper equities falling 2.6% in the same period.

RBC Capital Markets notes that the LME spot-to-3-month futures spread reached a premium of US$0.30/lb, its steepest level since the 2021 squeeze.

The supply disruptions have been accumulating, with PT Smelting Gresik facility in Indonesia affected by a boiler failure and Antofagasta cutting its 2026 production guidance due to storms at Los Pelambres.