Copper spot premiums surge to 2021 highs amid 42-day inventory drawdown, pressuring Bitcoin miners and AI infrastructure costs.
The London Metal Exchange copper spot premium reached $478 per ton over the three-month contract, the widest backwardation since 2021. The move reflects acute supply tightness as buyers pay elevated prices for immediate delivery amid dwindling inventories.
LME copper stocks have fallen for 42 consecutive days, the longest streak since 2014, with total inventories at 204,975 tons. Nearly half of remaining stockpiles are already slated for withdrawal. Copper prices have climbed nearly 16% this year, approaching January’s record high of $14,527.50 per ton.
The shortage threatens to inflate costs for Bitcoin miners and AI data centers, which rely on copper for cabling, transformers, and grid infrastructure. Tariff risks in the U.S. have further distorted trade flows, exacerbating the supply crunch.