Copper Prices Hit Six-Month High Amid London Metal Exchange Supply Concerns
· Business · Economic Times, Bloomberg
Copper prices reached their highest level in over six months on Monday, with benchmark rates rising 1.1% to $14,310 per metric ton in official London Metal Exchange (LME) trading. The surge follows a significant decline in LME inventories, which have halved since May to below 210,000 tons. Traders are moving metal to the United States in anticipation of potential tariffs on refined-metal imports, leaving 50% of remaining LME stocks earmarked for delivery. Conversely, copper stocks in Comex-registered warehouses have increased by nearly 700% to 735,470 short tons. Market analysts expect record-high import data for July, though rising premiums for near-term contracts may eventually encourage metal to return to LME warehouses.
Why it matters
The supply crunch in the power and construction sectors could drive up costs for industrial manufacturers globally. Increased volatility in metal pricing may also impact commodity-linked markets and trade flows between the US and international suppliers.
Read the original report — Economic Times
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