Copper Hoarding in the US Could Drive Prices to Unexpected Highs

Prices of copper have soared in 2025, with the metal reaching several record highs along the way. As the year comes to an end, several analysts are forecasting that this rally could carry on into 2026 fueled by a number of factors.

Citi analysts forecast that copper prices could climb significantly in 2026, partly driven by continued hoarding of the metal in the U.S. as traders seek to leverage arbitrage opportunities caused by concerns that Washington could impose import tariffs on the metal. Traders are front-loading the metal in the U.S. and straining supplies in other markets.

This market distortion is bound to create artificial scarcity on the LME and in Shanghai, pushing prices upwards on the global market. According to Citi, copper prices could reach $13,000 a ton in the early part of 2026 and possibly climb to $15,000 in Q2.

Economic data from China has been disappointing, and this would have, under normal circumstances, depressed copper prices. However, other supply-side factors like downward production revisions by major mining companies have kept prices elevated due to concerns about growing deficits on major metal exchanges.

The LME, which is considered the benchmark for commodities, saw the price of copper climb to another record of $11,816 a ton on Friday. Spot prices for this metal have gained 9% just this month alone and yet the month has barely crossed the halfway mark. So far this year, copper has rallied 36% on the LME.

StoneX metals analyst Natalie Scott-Gray points out that copper prices in the U.S. are usually higher than prices in other markets. As a result, more metal tends to be shipped there as traders seek to bag higher profits there. Scott-Gray adds that as concerns about likely tariffs grow, the incentive to move more copper to the U.S. has intensified and that has driven inventories there to approximately 750,000 tons. This is much higher than the market can actually consume, and this shows that hoarding is taking place.

On the LME, inventories have dwindled because of the large volume of “cancelled warrants.” These refer to volumes of metal reserved for delivery and therefore cannot be counted as available stock even if the metal is physically present in warehouses. These cancelled warrants have intensified concerns about limited supplies of the metal.

All in all, the copper market is still very much in flux with many factors on the supply side likely to trigger price volatility. At the same time, the demand side can also flip on a dime, so the trajectory of the price could swing wildly on either side if there is a development that shakes the market. Copper exploration companies like Torr Metals Inc. (TSX.V: TMET) will be watching these market drivers closely.

NOTE TO INVESTORS: The latest news and updates relating to Torr Metals Inc. (TSX.V: TMET) are available in the company’s newsroom at https://ibn.fm/TMET

About Rocks & Stocks

Rocks & Stocks (“R&S”) is a specialized communications platform delivering deep insights into the mining industry. It is one of 75+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, R&S is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, R&S brings its clients unparalleled recognition and brand awareness.

R&S is where breaking news, insightful content and actionable information converge.

To receive SMS alerts from Rocks & Stocks, text “Rocks” to 888-902-4192 (U.S. Mobile Phones Only)

For more information, please visit https://RocksAndStocks.news

Please see full terms of use and disclaimers on the Rocks & Stocks website applicable to all content provided by R&S, wherever published or re-published: https://RocksAndStocks.news/Disclaimer

Rocks & Stocks
Los Angeles, CA
RocksAndStocks.news
310.299.1717 Office
Editor@RocksAndStocks.news

Rocks & Stocks is powered by IBN