Copper could hit 'stratospheric new highs' as hoarding of the metal in U.S. continues
Spot prices of the red metal hit another high on Friday at $11,816 per ton on the London Metals Exchange, with 3-month futures closing at $11,515.
TL;DR
- Copper prices have hit multiple record highs in 2024, with further increases expected into 2026.
- Demand for copper is being boosted by the energy transition and artificial intelligence sectors.
- Supply disruptions, including persistent mine issues and production downgrades, are contributing to a projected deficit.
- Anticipation of U.S. tariffs has led to increased demand and hoarding of copper in the U.S., tightening global availability.
- Refined copper inflows into the U.S. have significantly increased due to arbitrage opportunities created by higher domestic prices.
- London Metal Exchange (LME) copper inventories are at multi-year lows, with a substantial portion reserved for physical delivery, indicating market tightness.
- Major copper producers like Glencore and Rio Tinto have lowered their 2026 production forecasts.