LONDON (Mining.com) -
Copper price hit a record high as surging power prices threaten to curb supply at a time when exchange stockpiles are at rock bottom.
Copper for delivery in December rose sharply for the third day in a row on the Comex market in New York, touching $4.7810 per pound ($10,518 per tonne), the highest since the record hit on May 12, 2021 — and a 12% gain for the week.
Copper tracked by LME warehouses not already earmarked for withdrawal has plunged 89% this month after a surge in orders for metal from warehouses in Europe. Stockpiles have also been falling fast on rival bourses and in private storage, and LME spreads have entered historic levels of backwardation (prompt delivery metal pricier than futures), with near-term contracts trading at record premiums.
The rally fed through to producers, with shares in Freeport-McMoRan up 4%, Southern Copper up 2.4% and First Quantum Minerals up 5% on the day.
After fresh orders to withdraw metal on Friday, there are now just 14,150 tonnes of copper freely available in LME warehouses, in an industry that consumes about 25 million tonnes annually.
“If more metal doesn’t make it into the exchange, then it really is in a difficult position,” Michael Widmer, head of metals research at Bank of America, told Bloomberg.