The spot price of copper is at its highest premium over London futures in nine years, suggesting that supply has failed to keep up with demand at a time when global inventories are in the doldrums. London Metal Exchange (LME) inventories have fallen by more than 75 per cent in the past two months as orders for metal extraction from European warehouses soared. At the same time, inventories on rival exchanges and private warehouses are falling rapidly. As a result, even if macroeconomic headwinds loom, physical traders are still firmly bullish on the macro fundamental outlook for rising copper.