Copper rises to record highs amid supply shortage

Copper prices continued to rise to record highs on Monday as signs of extremely tight supply offset fears that slower growth in China would affect demand.

At 1110 GMT, the copper three months on the London Metal Exchange (LME) rose 0.2% to US $ 10,303.50 a ton after reaching US $ 10,452.50, a short distance from the May all-time high of US $ 10,747.50.

Traders were paying huge premiums for early delivery copper after stocks in the LME storage system fell to their lowest level in decades.

The prices of the metal used in energy and construction increased 10% last week and in 2021 accumulate a rise of more than 30% this year after rising 26% in 2020.

Copper’s short-term direction will depend on whether higher premiums will bring more metal to LME warehouses, easing the supply squeeze, independent analyst Robin Bhar said.

He added that it was unclear if the LME’s low stocks point to a genuine shortage or if the metal is available in private storage, but indicated that the long-term outlook is positive with growing demand for electrification rather than fuel use. fossils.

Copper inventories in LME-registered warehouses rose to 21,050 tonnes from 14,150 tonnes on Friday, the lowest level in decades. Inventories in deposits on the Shanghai Futures Exchange (ShFE) total 41,668 tonnes, the lowest since 2009.