LME Copper Inflows Plummet to 2014 Lows Amid Supply Squeeze

Copper inventories on the London Metal Exchange (LME) have declined for 42 consecutive days, the longest such streak since 2014. The LME's front-month copper spread surged to a $370-per-ton premium on Friday, its widest one-month spread since the 2021 supply squeeze.

The cash-to-three-month spread also climbed to $434 per ton, highlighting the premium traders are paying for immediately available copper. Stockpiles have fallen to 204,975 tons, with nearly half of the remaining metal already scheduled for withdrawal.

The physical tightness is being compounded by copper flows toward the U.S., where expectations surrounding tariffs on refined copper have created an arbitrage opportunity. This is drawing metal away from the LME system and further tightening immediately available supply.