Copper Surges to Six-Month High Amid Supply Concerns and Record Imports

Copper prices have reached their highest level in over six months due to mounting supply concerns on the London Metal Exchange (LME). Inventories on the LME have fallen to their lowest since February, with a significant portion of metal earmarked for delivery.

According to Benchmark Mineral Intelligence analyst Albert Mackenzie, imports are expected to reach record highs for July. However, traders believe that rising premiums for near-term copper contracts will attract metal back to LME warehouses.

The premium for cash copper over the three-month contract has closed at $416.29, its highest since November 2021. Copper deliveries to LME warehouses have increased, but inventories in Comex-registered warehouses have climbed nearly 700% since U.S. President Donald Trump proposed import tariffs last year.