Copper Nears Record High As Shanghai Inventories Tumble, Fueling Scarcity Fears

Copper has almost retraced the selloff sparked earlier this month, following Reuters' report that the White House's "copper tariff plan stalls amid affordability concerns." Prices are back near record highs in London as Bloomberg reports tightening supplies in China's physical market, reinforcing scarcity concerns.

Three-month futures on the London Metal Exchange rose .7% to $14,763 a ton, putting the industrial metal within striking distance of its September 10 record of $14,875.

The driver, according to the outlet, is new Shanghai Metals Market data showing shrinking Chinese inventories. Those inventories fell to 43,900 tons, the lowest since 2023.

This year's rally follows a volatile stretch of upside price action, as uncertainty over potential US import tariffs on copper sent record inflows into US warehouses and tightened availability elsewhere.

We have highlighted how deteriorating conditions across global mining operations are adding to supply woes in the physical market for the industrial metal.

Copper, critical for AI and power grid buildouts, has climbed 18% this year and 70% since its April 2025 lows, according to Bloomberg data.

Veteran commodities strategist Jeff Currie has warned repeatedly that "physical economy is repricing scarcity in the real world."

With copper approaching record highs, The Market Ear's latest technical analysis report examines the price levels to watch for confirmation of a breakout (read here).