Copper Prices Approach U.S. Record as Shanghai Stockpiles Plummet

Copper futures in the United States have risen sharply, closing near the all‑time high of $5.12 per pound, while the premium over the London Metal Exchange price has more than doubled in recent weeks. In Shanghai, the amount of copper held in official stockpiles fell by 82%, according to data released by the China Securities Regulatory Commission. The sharp decline in Chinese inventories coincided with a surge in buying activity by manufacturers and traders, pushing spot prices higher.

The price movement comes amid a broader rally in base metals, driven by expectations of sustained demand from the construction and renewable‑energy sectors. Analysts note that the reduction in Chinese stockpiles reflects tighter supply conditions in the world’s largest copper consumer, which could support further price gains if the trend continues.

U.S. market participants have responded by increasing exposure to copper through futures contracts and exchange‑traded funds, while some producers have announced plans to boost output to meet rising demand. The widening premium over the LME benchmark suggests that market participants are willing to pay a higher price for immediate delivery, indicating a preference for physical availability over deferred shipments.

For investors, the convergence of higher spot prices and shrinking inventories signals a market environment where copper remains a key commodity for price monitoring. The developments may influence related sectors, such as mining equities and industrial commodities, as market participants adjust to evolving supply‑demand dynamics.