Copper Faces Historic Squeeze With LME Stockpiles Depleting Fast

One of the copper market’s biggest-ever squeezes is unfolding on the London Metal Exchange, as rapidly declining inventories push up spot prices.

Spot copper traded at a $280-a-ton premium to three-month futures on Monday, hitting the highest level seen since a record spike in 2021. The huge spot premium — known as a backwardation — signals a supply shortage, and it comes after a rapid drawdown in LME inventories over the past few months.

Stockpiles in the LME’s warehouses serve as a buffer for manufacturers during periods of strong demand, while holders of short positions can also use them to ...