Shanghai copper surges to record high amid supply squeeze
Source: Kapitales Research
Highlights:
Shanghai copper hit a record 91,400 yuan per ton, rising 2.45% at the time of writing, as supply concerns intensified following a spike in London Metal Exchange warrant cancellations.
LME copper also hovered near its all-time high, with fresh cancellations totalling over 50,000 tons pushing on-warrant inventories to their lowest level since July.
Forecast cuts from Glencore and upgraded price expectations from Goldman Sachs reinforced growing expectations of a global copper supply squeeze heading into 2026.
At the time of writing, copper futures on the Shanghai Futures Exchange were up 2.45%, trading at 91,150 yuan per metric ton (approximately US$12,894), after briefly touching a record peak of 91,400 yuan earlier in the session. This rise came as global supply concerns grow — cancellations of warrants on the London Metal Exchange (LME) spiked, hinting at tighter metal availability outside the U.S.
Global price surge: LME also jumps
The benchmark three-month LME copper contract recently touched a fresh record peak, with prices hovering around US$11,497–US$11,540 per ton. The rally reflects growing fears of a supply crunch worldwide — with inventories shrinking as cancellations and warehouse withdrawals mount.
Why copper is rising now and why it counts
According to analysts at a Chinese brokerage, the large wave of canceled LME warrants — more than 50,000 tons recently withdrawn — indicates global copper supply outside the U.S. is tightening. Meanwhile, some major producers are trimming near-term forecasts: for example, Glencore recently lowered its 2026 copper output estimate, underscoring the fragile supply outlook. With demand from electrification, renewable energy build-outs, and infrastructure rising sharply worldwide, this imbalance between supply and demand may keep copper prices elevated for some time.
What to watch next
If supply remains tight and demand keeps climbing — especially from green energy and industrial sectors — copper could remain firm heading into 2026. But volatility remains possible: any easing of supply pressure or surprise increases in production could cool the market. For now, copper appears to be riding a strong wave of global supply anxieties — and investors, manufacturers, and policymakers are paying attention.
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The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
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Shanghai copper surges to record high amid supply squeeze
Highlights:
At the time of writing, copper futures on the Shanghai Futures Exchange were up 2.45%, trading at 91,150 yuan per metric ton (approximately US$12,894), after briefly touching a record peak of 91,400 yuan earlier in the session. This rise came as global supply concerns grow — cancellations of warrants on the London Metal Exchange (LME) spiked, hinting at tighter metal availability outside the U.S.
Global price surge: LME also jumps
The benchmark three-month LME copper contract recently touched a fresh record peak, with prices hovering around US$11,497–US$11,540 per ton. The rally reflects growing fears of a supply crunch worldwide — with inventories shrinking as cancellations and warehouse withdrawals mount.
Why copper is rising now and why it counts
According to analysts at a Chinese brokerage, the large wave of canceled LME warrants — more than 50,000 tons recently withdrawn — indicates global copper supply outside the U.S. is tightening. Meanwhile, some major producers are trimming near-term forecasts: for example, Glencore recently lowered its 2026 copper output estimate, underscoring the fragile supply outlook. With demand from electrification, renewable energy build-outs, and infrastructure rising sharply worldwide, this imbalance between supply and demand may keep copper prices elevated for some time.
What to watch next
If supply remains tight and demand keeps climbing — especially from green energy and industrial sectors — copper could remain firm heading into 2026. But volatility remains possible: any easing of supply pressure or surprise increases in production could cool the market. For now, copper appears to be riding a strong wave of global supply anxieties — and investors, manufacturers, and policymakers are paying attention.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au