FX.co ★ Copper Hits Four-Month High on Tight Supply

Copper futures in the United States surpassed $5.20 per pound on Monday, marking their highest level in four months. This increase was driven by tight supply and heightened premiums. The surge followed a record high on the London Metal Exchange (LME) the previous Friday, influenced by supply challenges such as reduced output in Chile, anticipated production cuts by Chinese smelters, and a weakened US dollar. Since late August, copper prices on the LME have climbed approximately 13% amid ongoing supply shortages. Meanwhile, traders have boosted shipments to the U.S., seeking to benefit from the elevated Comex prices, amid uncertainty regarding potential tariffs from President Donald Trump's administration. Additionally, trading volatility increased after a prolonged trading halt on the Chicago Mercantile Exchange, which led to reduced liquidity and further raised premiums on the Comex.