Copper Futures Hit New Record Above $6.70 a Pound
Key Takeaways
- •Copper futures climbed above $6.70 a pound, setting a new all-time high on Wednesday.
- •Traders have been diverting copper shipments to the United States because of elevated premiums and possible new tariffs, though no final White House decision has been announced.
- •London Metal Exchange warehouse inventories have fallen by nearly 50% since mid-May after 42 consecutive daily declines.
- •Zijin Mining said flooding at the Kamoa-Kakula copper complex could reduce its share of production by as much as 57,000 tons this year.
- •Chinese smelters are having difficulty obtaining feedstock, increasing import demand and highlighting supply-chain strain.
Copper Futures Hit New Record Above $6.70 a Pound
Copper futures climbed above $6.70 per pound on Wednesday, setting a new all-time high as supply-side risks continued to support prices even after a recent easing in the market squeeze. The move comes as copper remains closely watched across manufacturing, power infrastructure, and construction markets because of its role as a widely used industrial metal.
Traders kept diverting shipments toward the United States amid elevated premiums and expectations of new tariffs under the Trump administration, although the White House has not yet made a final decision on the matter. That keeps attention on trade policy as a potential source of further disruption in an already tight physical market.
Copper inventories in warehouses tracked by the London Metal Exchange have fallen by almost half since mid-May, following a 42-day streak of declines, underscoring how quickly available stock has been drawn down.
Elsewhere, Zijin Mining warned that flooding at the Kamoa-Kakula copper complex in the Democratic Republic of Congo could reduce its share of production by as much as 57,000 tons this year, adding to concerns over global supply.
On the demand side, Chinese smelters have had difficulty securing feedstock, increasing the need for imports and highlighting strain in the raw material chain that feeds refined copper production.
Source: Trading Economics
