Copper Prices Surge to Record High of $5.08 Amid Short Squeeze, Up 30% YTD

May 15, 2024, 11:19 AM

Copper prices have surged to a record high, driven by a powerful rally and a short squeeze in New York. Copper futures in New York reached an intraday high of $5.08 per pound, surpassing the previous record of $5.03 set in March 2022. The price increase, up 30% year-to-date, has been fueled by forecasts of a growing global supply deficit and increased demand from momentum buyers. This surge has prompted a rush to secure and ship copper to the US, with US copper trading at a significant premium to London levels. The rally has seen copper futures rise as much as 5.5% this week, with prices climbing 28% over the last three months. Despite continued softness in China data, the tight supply outlook has attracted substantial demand, with prices even hitting $5.15 in early Wednesday London trading.