Copper Supply Crunch Deepens as Inventories Fall Copper markets are facing a growing supply squeeze, with spot prices on the London Metal Exchange (LME) rising sharply above later-dated futures. The September contract traded more than $260 above October futures, marking the widest one-month spread since the 2021 copper squeeze. LME inventories have fallen for 42 consecutive days to 204,975 tons, with nearly half of the remaining metal already earmarked for withdrawal. This leaves very limited immediately available supply and increases pressure on traders holding short futures positions. The tightening supply is being amplified by strong shipments to the US and China, where copper prices are higher than on the LME. In the US, traders are anticipating possible tariffs on refined copper, while Chinese smelters are cutting production because of tight raw-material supplies. At the same time, long-term concerns over limited mine supply and rising demand from renewable energy, electric vehicles, and data centers are adding to expectations of a market deficit. Copper prices remain near record highs, with analysts warning that prices could rise above $14,500 per ton if the supply squeeze continues.