Copper ETFs Rally as LME Spread Hits Widest Since 2021 Supply Squeeze
COPP sits 87% above its 52-week low of $22.67.
Summary
Copper's physical market is flashing severe tightness: the LME front-month spread surged to a $370/ton premium, the widest since the 2021 squeeze, and inventories have fallen for 42 straight days to 204,975 tons with nearly half already earmarked for withdrawal. Tariff-driven flows to the U.S. are pulling metal out of the LME system, deepening the backwardation. COPP has climbed about 15% over the past month and COPJ roughly 17%, though flows remain concentrated in the larger COPX fund, which has taken in $2.5B this year. The junior-miner COPJ offers more concentrated exposure to smaller producers and explorers, making it more sensitive to copper price moves. Watch whether LME inventories keep falling and the extreme backwardation persists—that could trigger broader inflows into these smaller ETFs.
At the time of this announcement, COPP was trading at $42.35 on NASDAQ in the Industrial Applications And Services sector. The 52-week trading range was $22.67 to $47.46. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Benzinga.