Copper Market Supply Tightens, LME Copper Spot Premium Reaches Highest Level Since 2021

Copper prices are approaching historic highs, with the key spot premium on the London Metal Exchange widening to abnormal levels, indicating an intensifying competition for copper supplies in the market. LME copper spot prices were once $478 per ton higher than the three-month futures contract, marking the largest premium since the massive squeeze in 2021. This backwardation, where spot prices exceed forward prices, typically reflects short-term demand outpacing available delivery supplies. So far this year, copper prices have surged nearly 16%. As the market continued to draw large amounts of copper stocks to the U.S. ahead of announcements regarding tariffs by the Trump administration, supplies in other regions have diminished. LME three-month copper rose 1.4% to $14,363.50 per ton, poised for its eighth consecutive week of gains. This increase has brought copper prices closer to the record high of $14,527.50 per ton set in January this year.