Copper price sets new record in London

Core Insights - Copper prices have reached a new record in London due to increased orders for withdrawal from warehouses, indicating concerns over a global supply squeeze [1] - The LME's global benchmark price has risen over 30% this year, with US futures experiencing even greater increases amid expectations of potential tariffs on copper [2][3] Supply Dynamics - Significant withdrawals from LME warehouses suggest that available copper supply is depleting faster than before, raising the likelihood of further tightness in the market [4] - Producers are planning to charge record premiums for copper supplies in Europe and Asia, as they anticipate higher profits from sales to the US [4] Market Predictions - Mercuria Energy Group forecasts a major global supply squeeze by the first quarter of next year, predicting that copper prices will continue to rise [5] - The copper market has faced supply disruptions due to mine outages in key regions, including Chile and Indonesia, which have tightened supplies this year [6] Demand and Negotiations - Despite supply concerns, demand remains tepid, with Chinese smelters and miners engaged in challenging supply negotiations for 2026, where miners currently hold the upper hand [7]