Copper's LME Crunch: Inventories Plunge 18% as Energy Transition Demand Accelerates

2026-11-01, FP360 — LME copper inventories have plummeted 18% in the past month to 85,000 tonnes, the lowest since 2022, as energy transition demand accelerates; the cash-to-3M spread has flipped to a $45 backwardation. The tightness stems from surging grid and EV demand, with Chinese smelters cutting output; immediate impact: tight spreads and higher prices for consumers.

The Signal: Copper's backwardation signals physical scarcity, pushing prices toward $11,000/t.

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Originally published on FINPULSE 360