Overview
- LME three-month copper hovered near $11,600 on Dec. 16 after Friday’s $11,952 record, easing 0.3% in thin year-end trading as volatility stayed elevated.
- Reuters reported traders cutting or rolling bearish positions ahead of the LME settlement on Wednesday, fueling short-covering moves.
- Comex inventories remain at record highs with ongoing daily inflows as traders capture the LME–CME arbitrage, following the August exclusion of refined copper from 50% U.S. tariffs that remain under review.
- Analysts say aggressive U.S. stockpiling has effectively trapped inventory domestically, tightening supply elsewhere and supporting higher premiums in Europe and Asia.
- Supply setbacks at major mines and speculative flows tied to AI data centers and the energy transition are supporting prices, though Goldman cautions that frothy positioning heightens reversal risk.