Copper Prices are Reflecting a Supply Scarcity That Doesn’t Currently Exist
Over the last year, we’ve seen various warnings of a copper shortage, which have led the metal’s price to new highs. This is different from recent figures, which show that the biggest metal exchanges globally currently hold over 1.1 million metric tons of the red metal. This is quite a feat, especially considering holdings are at their highest in over two decades. While the majority of holdings were held by warehouses in the U.S. in 2025, the Shanghai Futures Exchange and London Metal Exchange (LME) warehouses have recorded huge inflows since this year began. Since the start of the year, worldwide exchange inventory has increased by 300,000 tons, suggesting that the red metal’s rally has constrained demand from the…