London copper reaches another record high, LME delivery orders surge to the highest level since 2013, driven by soaring Asian demand.

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London Metal Exchange (LME) copper prices continued their strong rally, once again reaching record highs. Exchange data shows that delivery orders saw the largest single-day increase since 2013.

On Wednesday, boosted by a surge in copper delivery orders from Taiwan and South Korea, copper prices once rose by 2.4%, with prices exceeding $11,400 per ton, breaking the peak set the previous day.

Analysts indicate that the current rally is still dominated by supply-side factors. On one hand, in order to avoid potential US import tariffs, a large amount of copper inventory is continuing to shift to the US, intensifying spot shortages in other regions; on the other hand, multiple mine production interruptions this year have reduced global supply flexibility. Supported by these structural factors, copper prices have risen by nearly 30% so far this year.

The continued rise in copper prices is putting cost pressure on downstream manufacturing and construction industries, while creating significant profit margins for upstream mining companies. The market's current focus is shifting to the series of US economic data to be released this week, including ADP employment, import prices, and industrial production indicators. These figures may affect future monetary policy expectations, thereby influencing copper price trends.

Surging Asian Delivery Demand, Inventory Orders at Ten-Year Highs

The surge in copper delivery orders (i.e. “canceled warrants”) on the London Metal Exchange (LME) has become the direct catalyst for LME copper prices breaking historic highs. According to media reports, exchange data shows that copper delivery orders from warehouses in Taiwan and South Korea have risen significantly, pushing overall delivery order volume to the highest level since 2013.

A sharp rise in canceled warrants usually means that traders or downstream users holding warrants plan to physically withdraw copper from exchange warehouses, which is interpreted by the market as a signal of urgent spot demand. As the world’s largest copper consumption region, the sudden surge in delivery activity from Asian warehouses further highlights the tightening of short-term spot supply, thus providing immediate and strong upward support for copper prices.

Persistent Shadow over Supply Side, Expectations Dominate Market Sentiment

Since the beginning of this year, supply issues have consistently dominated copper price trends. Analysts point out that major copper mines around the world have encountered continuous unplanned shutdowns. The Grasberg mine experienced a production accident and consequent output reduction, while mines such as Chile’s Escondida produced less than expected due to community protests and labor negotiations.

More crucially, negotiations over copper concentrate processing fees (TC/RC) for 2026 have stalled. Reports state that miners, with their dominant position on the supply side, have taken a tough stance in negotiations. This move is expected to push up future smelting raw material costs, which will then be passed on to the refined copper market, intensifying expectations of a supply crunch.

At the same time, to avoid potential US import tariffs, traders are shifting a large volume of spot copper to the US, further diverting available inventory from other regions globally, thereby reinforcing market expectations of overall supply tightness.

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