What is causing the current copper supply crunch, and how is it reflected in LME trading spreads?

The current copper supply crunch is driven largely by traders shifting hundreds of thousands of tons to the US ahead of a potential decision on import tariffs by the Trump administration, creating short-term supply tightness. This stress is reflected in the LME's 'Tom/next' spread — the price to roll positions forward by one day — which spiked to a $75-a-ton premium, the largest gap since January's $100 level, and coincided with spot prices jumping up to $545 a ton above three-month futures.

How are US tariff concerns and regional inventory trends affecting global copper markets?

US tariff concerns — with the Commerce Department due to recommend on copper tariffs by end-June but no announcement yet — have spurred copper flows to American ports, depleting warehouses elsewhere; meanwhile, LME global inventories saw their first net increase since June 17 (driven by +3,000 tons in Malaysia), while elevated prices in China have dampened demand and pushed Shanghai inventories up to ~80,000 tons, according to Shanghai Metals Market data.

Supply Crunch Grips Copper Market as Key Spread Flares Out

Aug 17, 2026

Copper prices surged amid a supply squeeze driven by US tariff fears and strong demand from data centers and renewables. Major miners like Rio Tinto and BHP reported revenue gains, though global inventory trends remain mixed.

bloomberg

2026-08-17

Supply Crunch Grips Copper Market as Key Spread Flares Out

Supply Crunch Grips Copper Market as Key Spread Flares Out

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