Copper Supply Crunch Deepens as LME Stockpiles Shrink
LME copper's one-month spread is the widest since 2021, with inventories down for 42 straight days and nearly half of remaining metal already earmarked.
The London Metal Exchange copper curve is flashing severe tightness. The September contract traded more than $260 above October futures, the widest one-month spread since the 2021 squeeze. LME inventories have dropped for 42 consecutive sessions to 204,975 tons, and close to half of that metal is already set aside for withdrawal, leaving very little immediately available supply.
Flows to the United States and China are reinforcing the squeeze because copper prices in those markets are higher than on the LME. US traders are positioning for possible tariffs on refined copper, while Chinese smelters are reducing output due to tight raw-material supply.
Longer-term supply constraints are adding to the deficit narrative, with limited mine supply and demand from renewable energy, electric vehicles, and data centers. Analysts warn copper could top $14,500 per ton if the squeeze persists.
Source: First Squawk