Copper Rallies Again as Prices Climb on the LME and Comex

Copper prices rose yesterday following fresh indications of physical supply shortages in China and heightened speculation that the United States may impose import tariffs on refined copper, pushing prices to their highest level in more than a month.

The September copper contract on the Comex rose 3.3% by early afternoon in New York to $6.55 per pound, equivalent to $14,440 per metric ton, leaving it less than 2% below the all-time high recorded in early June.

Meanwhile, three-month copper on the London Metal Exchange (LME) gained 1.7% to $13,851 per metric ton, its highest level since June 15. As a result, copper in the New York market traded at a premium of nearly $600 per metric ton over the London market, indicating that traders are once again pricing in the possibility of U.S. tariffs on refined copper imports. The final decision on the matter currently rests with the White House.

The main driver behind the price increase has been the worsening supply shortage in China, where two key indicators are simultaneously signaling tighter market conditions.

In China’s domestic market, the premium for spot copper cathode over Shanghai Futures Exchange contracts climbed to 435 yuan ($61) per metric ton, compared with virtually zero just one week earlier. This marks the highest level since May last year. In other words, buyers were willing to pay more for immediate delivery, reflecting tight physical supply.

According to data from Shanghai Metals Market, the Yangshan copper premium, which reflects a significant share of China’s copper imports, rose to $103 per metric ton on Monday, the highest level since May 2025, representing a sharp increase from the $20 low recorded in January.

Deliverable copper inventories in warehouses monitored by the Shanghai Futures Exchange (SHFE) have fallen 82% since the beginning of May. Over the same period, inventories in London Metal Exchange warehouses have declined by 28%.