LME Copper Inventories Surge 50% Amid US Tariff Uncertainty

Copper inventories on the London Metal Exchange (LME) have surged by over 50% in just three days, easing concerns of a severe supply squeeze. The increase was driven by deliveries to LME warehouses between August 17 and 19.

According to Benchmark Mineral Intelligence, on-warrant copper stocks rose by 63,000 tonnes during this period, while total LME stocks gained 28,000 tonnes. This influx of metal helped narrow the key market spread, which had widened due to tight supply and high demand for immediate delivery.

The deliveries were likely triggered by high prices for immediately available copper, which drew metal back onto the exchange. Benchmark analyst Albert Mackenzie noted that unusual trading conditions created by US tariff uncertainty have led to regional imbalances in global copper flows, exaggerating perceptions of physical scarcity.