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    ING reports that concerns about supply and increased US imports are driving copper prices near record highs.

    by VT Markets
    /
    Jan 13, 2026
    Copper prices are approaching record highs due to ongoing supply concerns and increased imports to the US, anticipating possible tariffs. Comex Copper inventories have reached a new peak after 42 weeks of growth, yet they still fall short of total warehouse capacity. These factors have created tight market conditions outside the US. The increase in copper prices coincides with the US importing large amounts, as the market prepares for potential trade tariffs. There is a noticeable split between the US and global copper markets. American companies are stockpiling ahead of the expected Q2 tariffs. Looking back to late 2025, this trend led to a record increase in Comex inventories, now exceeding 120,000 tons. As a result, we see an unusual price difference between the London Metal Exchange (LME) and Comex futures contracts. The tight situation outside the US has worsened due to stalled labor negotiations at several key mines in Peru, which began last quarter. This month, LME-registered warehouse inventories fell below 70,000 tonnes, a multi-year low, driving global prices up. This stands in contrast to the stockpiling trend we observed in the US during the second half of 2025. Given the current landscape, we recommend taking long positions in LME March copper call options to benefit from further price increases caused by the global supply deficit. The CBOE Copper VIX, which measures expected volatility, has climbed over 18% since December, indicating that option premiums are high but justified. This environment favors strategies that capitalize on rising prices and uncertainty in the global supply chain.

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