Copper futures set record close at $6.92 as supply shortages sharpen

  • Copper futures touched $6.95 intraday and closed at a record $6.92 on September 22.
  • Shanghai copper cathode inventories fell to 43,900 tonnes, their lowest level since 2023.
  • Michael Burry identified Ero Copper as his indirect artificial intelligence investment.

Copper futures touched a record $6.95 a pound intraday on September 22 and closed at a record $6.92, extending gains to nearly 20% in 2026 and more than 46% over the past year. The rally has accelerated since mid-September as Chinese buyers stocked up ahead of the holidays, despite an earlier almost 8% decline after reports that a White House tariff plan had stalled. Physical-market indicators point to tightening availability: Shanghai copper cathode inventories fell to 43,900 tonnes, their lowest level since 2023, while cancelled warrants in London Metal Exchange warehouses rose to 122,150 tonnes, or 48% of metal on warrant. The move followed Michael Burry’s September 21 disclosure that Ero Copper, a Brazil-focused copper-and-gold producer, was his indirect artificial intelligence bet. Burry cited data showing that major copper discoveries have fallen to one or two annually from double-digit levels, with none in 2025, while new deposits can take about 18 years to reach production and data centers can add demand within two to three years. S&P Global projects copper demand will rise 50% to 42 million tonnes by 2040 and sees a potential 10-million-tonne shortfall without significant adjustments. Near-term conditions remain uncertain: CRU had projected a 639,000-tonne global surplus for 2026, while Burry said part of the rally reflected a temporary supply lull. Traders are awaiting the White House tariff decision, which could affect whether U.S. stockpiles flow to buyers elsewhere.

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