Tightening nearby market conditions and reduced inventories drive copper prices toward all-time highs amid strong demand.
LME copper prices climbed above $14,000 per tonne, approaching record levels as supply constraints intensify. The rally is fueled by surging tom-next and cash/3m spreads, which hit premiums of $75/t and $545/t, respectively, signaling acute spot tightness.
Inventories in LME warehouses remain near multi-month lows despite a modest recent increase. Shipments to the US ahead of potential import tariffs and Chinese buying have drained available supplies, exacerbating the squeeze.
Analysts expect near-term tightness to persist, particularly if demand from electrification and infrastructure projects remains resilient. The market’s focus on physical availability continues to underpin prices.