LME copper stocks rise for the eighth consecutive day

Summary

LME copper inventories rose for the eighth consecutive day, adding 8,025 tons Zhitong, following a record 42-day destocking cycle that hit multi-month lows [citation:5, 9]. Despite this build, copper prices remain near all-time highs of $14,527/ton [citation:2, 4], supported by a massive spot premium exceeding $500/ton—the highest since the 2021 squeeze [citation:4, 7].

Impact Analysis

So basically, we’re seeing a classic ‘tug-of-war’ that signals extreme market stress rather than a true bearish turn. The headline is the 8-day inventory build Zhitong, but don’t let that fool you into thinking the supply crunch is over. This follows a brutal 42-day destocking cycle—the longest since 2014 .

The real ‘tell’ is the massive $500+ spot premium . When cash copper costs that much more than three-month futures, it’s a red alert for a physical squeeze. The recent inventory uptick is likely just metal being flushed out by these insane premiums or redirected to LME warehouses to capture arbitrage .

We’re sitting just a fraction below the $14,527 all-time high . The market is pricing in a systemic supply-demand failure. I’d read this inventory rise as a temporary relief valve, not a trend reversal. Until that backwardation collapses, the path of least resistance for prices remains upward. The trade here isn’t shorting the build; it’s watching for the moment the squeeze breaks the price ceiling.