MUFG: Copper - FJElite

Copper hits record high as supply tightness intensifies. Copper extended its rally to a fourth session, reaching a record USD 14,617/t on the London Metal Exchange as tight near-term supply and expectations of US tariffs on refined copper boosted pnces. The metal has gained around 17% this year, supported structurally by constrained mine supply and rising demand from data centres, renewable-energy infrastructure and power grids. Near-term tightness has intensified as large volumes of refined copper have been redirected toward the US ahead of potential tariffs, draining LME inventories and keeping the futures curve in steep backwardation. Meanwhile. Chinese demand is expected to strengthen as the world's largest copper consumer enters its traditional peak manufacturing season, with inventories on the Shanghai Futures Exchange falling to their lowest since 2024.