Copper shortage warning intensifies as LME traders pay $370-per-tonne premium for prompt supply
AI Market Summary
LME copper is signaling acute physical tightness as nearby spreads spike into steep backwardation (front-month +$370/ton; cash-3m +$434/ton, highest since 2021) alongside 42 straight days of inventory declines. With a large share of remaining stocks earmarked for withdrawal and refined copper reportedly being diverted to the US on tariff expectations, near-term availability is tightening, increasing sensitivity to supply disruptions and procurement stress across copper-dependent industries.
Impact level
● High
Affected assets
NCCO724COPPER2USD/USDT-0.16%
AI Insight · NCCO724COPPER2USD/USDTAI Insight
▲ Bullish
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The London Metal Exchange’s (LME) front-month copper spread jumped to a $370-per-tonne premium on August 14, while the cash-to-three-month spread reached $434 per tonne, the highest levels since the 2021 supply squeeze. LME copper inventories have fallen for 42 consecutive days, the longest uninterrupted decline since 2014. The continued drawdown is adding to signs that the spot market is extremely tight.
