Why is copper heading toward a record high on the LME, and what does the widening price spread indicate?

Copper is heading toward a record high on the London Metal Exchange due to intensifying supply tensions, as evidenced by a seven-week rally and a sharply widening spot-to-three-month price spread. The spot price traded as much as $478 a ton above the three-month contract—the largest backwardation since the 2021 squeeze—signaling acute near-term supply tightness. This backwardation structure reflects heightened competition for immediate physical copper, driving the three-month price up 1.2% to $14,331 a ton and bringing it close to the intraday record of $14,527.50 set in late January.

What specific price level has copper nearly reached on the LME, and how does current backwardation compare to historical extremes?

Three-month copper on the LME advanced to $14,331 a ton, nearing the intraday record of $14,527.50 reached in late January. Simultaneously, the spot-to-three-month price spread widened to $478 a ton—the largest backwardation since the major market squeeze in 2021—indicating that current near-term supply constraints are approaching historically significant levels of severity.

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Copper Heads Toward Record High on LME as Supply Tensions Build

Aug 16, 2026

Copper prices approached record levels on the London Metal Exchange amid rising supply tensions. A widening spot premium indicates near-term tightness, with three-month futures reaching $14,331 per ton.

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