LME Copper Prices Plummet Below $14,000/t Amid Inventory Surge
Copper prices on the London Metal Exchange (LME) have retreated sharply after a significant increase in on-warrant inventories eased the previous supply squeeze. The price of copper fell below $14,000/t for the first time since July 23.
The LME stockpile rose by 20,025 tonnes, its largest daily increase since April 7, extending gains to six consecutive sessions and reaching a total of 123,100 tonnes. This surge in stocks has helped alleviate tightness caused by strong shipments to the US driven by tariff-related arbitrage opportunities.
The improved supply situation is reflected in the narrowing of the LME cash/3M copper spread to $248/t and the retreat of the tom-next spread after recently reaching levels last seen during the 2021 copper squeeze. Speculators have trimmed their net long copper positions by 6,340 lots to 53,914 lots, ending a two-week streak of increases despite higher copper prices.