Copper prices have surged to a three-month high driven by tightening supply and renewed optimism in global trade.
As of early July 2025, copper futures for September delivery on the COMEX rose over 2.1% to reach US$5.1925/lb., or approximately US$11,423/t, approaching an all-time high of US$5.277/lb set in March. Similarly, the London Metal Exchange (LME) three-month copper contract touched US$9,984/t, its highest since 27 March 2025.
This price rally is largely attributed to a significant reduction in LME copper inventories, which have fallen by approximately 65% year-to-date. Traders have been redirecting copper shipments to the US in anticipation of potential Section 232 tariffs, leading to a sharp backwardation in the market. The “tom/next” spread, the premium for immediate delivery over two-day delivery, widened to US$98/t.
Analysts are closely monitoring the US Commerce Department’s investigation into copper imports, with a decision expected by November. The outcome could significantly impact global supply chains and price dynamics.
In the meantime, market participants are navigating the complexities of shifting trade flows and inventory movements, which continue to influence copper prices.
