Copper Surges Toward Record as US Tariff Fears Drain Global Inventories
London copper prices rallied for a fourth straight session, approaching an all-time high, as tight supplies and robust demand outweighed trade policy concerns.
Copper prices on the London Metal Exchange have climbed for four consecutive sessions, nearing a record high. The rally is fueled by a buildup of inventories in the United States ahead of potential new tariffs, which has effectively tightened supply in other major markets like London and China.
The LME cash-to-three-month spread has flipped into a steep backwardation of $130 per ton, an indication of severe near-term scarcity. Stockpiles outside the US continue to shrink, adding to the upward pressure.
Investor sentiment also improved on reports of progress toward a diplomatic arrangement concerning the Strait of Hormuz, a critical chokepoint for global energy and trade flows.
Source: First Squawk