Copper extended a seven-week rally to approach a record high, driven by tightening supply conditions on the London Metal Exchange (LME). The metal’s spot price traded up to $478 per ton above three-month futures, the largest spread since the 2021 supply squeeze, signaling intense competition for short-term inventory. This backwardation structure reflects acute near-term supply pressures.

Analysts attribute the rally to geopolitical tensions, mining disruptions, and strong demand from green energy sectors. The LME has faced scrutiny over warehouse delays, exacerbating concerns about liquidity and delivery reliability. With inventories remaining low, further gains could unfold if supply chains remain constrained.

Market participants are closely watching inventory levels and exchange policies for signs of stabilization. Copper remains a bellwether for global economic health, and its recent performance underscores persistent industrial demand despite macroeconomic headwinds.