Copper jumps to six-month high on supply worries, tight stocks
XLB•Copper hits six-month high as supply concerns build
Copper prices hit their highest in six months on Thursday as worries about tightening stocks outside the United States coincided with concerns about reduced supply of concentrates from the Democratic Republic of Congo.
Benchmark three-month copper CMCU3 on the London Metal Exchange was 1.2% higher at $14,275.50 a metric ton by 1005 GMT after hitting $14,369.5, the highest since the January 29 record of $14,527.5.
Congo banned exports of copper concentrate and cobalt concentrate as it tries to force domestic processing and retain more value from its mineral resources, according to a new government order reviewed by Reuters on Thursday.
The development inflated worries about supply and added to uncertainty over possible U.S. import tariffs, which kept COMEX copper above the LME benchmark and drew metal into U.S. warehouses.
COMEX copper futures HGc1 hit a record high of $6.723 per lb on Thursday and traded at a premium against the LME contracts 0#LMECMXCU: as the market continued to price in a potential U.S. import tariff decision.
The most active COMEX September contract HGc2 was last up 1.3% at $6.817 per lb ($15,029 a ton).
Inventories tighten while other base metals move mixed
The premium for LME cash copper over the three-month contract CMCU0-3 widened to $130 a ton, the most since October, signalling tightening conditions for near-term supply with total copper stocks in the LME-registered warehouses at 226,650 tons, the lowest since mid-February.
StoneX estimated at least 1.2 million tons of copper have entered the U.S. since February 2025, leaving about 64% of globally visible inventories in the country.
In other LME metals, nickel CMNI3 was down 2.2% at $16,735 a ton, having touched its lowest since July 13 at $16,565 after Chinese market information hub SMM reported that one of Indonesia's nickel miners had received an additional quota for nickel ore production.
