London Copper Premium Hits Five-Year High Amid Warehouse Metal Depletion
The London copper market experienced its highest premium over deferred futures in five years due to dwindling metal holdings in exchange warehouses. The August contract on the London Metal Exchange traded at a premium of up to $370 per tonne above September futures, while the cash-to-three-month spread reached $434 per tonne.
The benchmark three-month contract remained above $14,100, reflecting a nearly 14% increase in value since the beginning of 2026. Inventory levels at the LME declined for a 42nd consecutive day, with total holdings falling to 204,975 tonnes and nearly half of remaining inventory allocated for withdrawal.
The significant drawdown is attributed to traders shipping metal to the United States and China, as well as Chinese smelters reducing output due to tight feedstock supplies following a ban on concentrate exports from the Democratic Republic of Congo. BMI projects the full-year average price to approach $13,500 per tonne, citing strong upside risks.