US copper futures hover above $6.6, near $6.7 record after supply concerns
US copper futures were above $6.6 per pound on Monday, near a $6.7 record high tested late August. The move ties to supply worries: Strait of Hormuz disruptions, sulfuric acid shortages, and front-loaded buying ahead of potential tariffs.
7 tested in late August as supply concerns built. The escalation of strikes between the US and Iran prolonged the suspension of normal commercial vessel flows through the Strait of Hormuz. That worsened sulfuric acid shortages for refiners in key South American hubs, while supply pressures from GCC countries led China to halt exports. Lingering concern that the US presidential administration could impose tariffs on unprocessed copper goods also prompted front-loading of deliveries and a surge in buying.
Backwardation curves steepened across major Western copper exchanges. 1% decline in global production in the first half of the year.