The copper rally is getting weird because inventories are rising too

Usually when exchange inventories rise, traders treat it as bearish. More visible supply usually means less panic. Copper is not acting that simple right now. Reuters reported that Comex-registered copper inventories are up more than 550% since the start of 2025. At the same time, copper prices recently pushed higher, with the US market still trading around tariff risk and a wider CME premium versus London pricing. Reuters also noted that the CME premium over LME is widening again as the market waits for the next US tariff decision. That is the weird part. Rising visible inventory does not automatically mean the market is comfortable. In this case, it may be showing defensive buying, regional stockpiling, tariff preparation and arbitrage flows into the US. So the copper market is not just asking "how much copper exists?" It is asking "where is the copper, who controls it, and what happens if tariffs change the trade flow?" That is why I think the copper trade is becoming more about supply security than just spot price. Producers like FCX, SCCO, TECK and HBM are still the cleaner exposure. They have scale and real copper operations. The junior side is much more dangerous. I have been researching NRED CN / NREDF because NovaRed has the Wilmac copper-gold project in BC, around 16k hectares near Copper Mountain. It fits the North American supply-security theme, but it is still an explorer with no production, no cash flow and real funding risk. Not financial advice. The interesting part to me is that copper is rallying in a market where inventory movement looks more like stress than comfort.