Supply Crunch and Record High Developments in Copper Prices
Globally increasing demand and supply constraints are playing a role in copper prices approaching historical peaks.
As concerns over supply crunches and increased demand persist in the copper market, prices are heading toward record levels as inventories in Shanghai fall to their lowest point since 2023.
Winning Streak and the Shanghai Market
Copper is heading toward its longest winning streak in the last four months. According to the Shanghai Metal Market, the majority of imported copper arriving in China went directly to manufacturers.
While this situation caused spot supplies to remain limited, stockpiling by some sub-sector producers ahead of holidays boosted demand.
Inventories at Lowest Level Since 2023
Copper cathode inventories in Shanghai dropped to 43,900 tons, recording the lowest level seen since 2023.
Global Markets and Tariff Expectations
Expectations that the Trump administration will impose tariffs on refined copper have triggered a surge of imports into the U.S.
This flow directed toward the U.S. has paved the way for supply contraction in other markets and upward movement in prices.
Latest Price Levels on Exchanges
Copper prices reached an all-time high of $14,875 per ton on September 10.
Meanwhile, three-month copper futures on the London Metal Exchange rose by 0.7 percent to $14,763 per ton.