Copper hits record highs as LME spot reaches $14,912 a ton

Copper hit records in spot and pound-denominated trading, with London Metal Exchange cash prices reaching an intraday $14,912 a ton on the 17th and the metal earlier touching $6.73 a pound before steadying at $6.56. The cash premium over LME three-month futures widened to $543.50 a ton, the largest since the 2021 supply squeeze and the widest in about five years, as LME inventories fell for 42 straight business days and supply outside the United States tightened even as tariff-related import flows swelled U.S. stocks. Analysts and market participants tied the rally to strong demand from AI data centers, renewable energy, electric vehicles and power grids, alongside mine disruptions, producer shortfalls, declining ore grades, sulfur-chain stress and Middle East-related logistics and energy costs. Slower U.S. inflation and rising growth concerns also tempered expectations for hawkish Federal Reserve policy, adding support to commodity prices, though some traders warned higher prices could eventually curb demand.

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