Copper prices surged to a new record of $11,137 a tonne, driven by production disruptions at major mines, ageing facilities, and disappointing forecasts from top producers like Glencore, Antofagasta, Anglo American, and Teck Resources. Supply fears are compounded by events such as a fatal mudslide at Freeport-McMoRan’s Grasberg mine in Indonesia, according to the Financial Times. Meanwhile, demand is rising, fueled by growth in electric vehicles, AI data centers, and energy infrastructure. Market tensions, including US-China trade dynamics and Trump-era tariffs, have also contributed to price volatility. Analysts warn that sizable deficits in copper could persist in the coming year, even as increased trading activity adds further pressure on the market. They write:
Copper prices hit a record high on Wednesday as disruptions at large mines and a string of disappointing forecasts from big producers deepened fears of a supply shortage.
The London benchmark price of the industrial metal, which is used in sectors from construction to electric vehicles, rose 1 per cent to $11,137 a tonne, surpassing a previous record of $11,104 set in May 2024.
A combination of Donald Trump’s tariffs on the metal, ageing mines and production disruptions at some of the world’s biggest mines has powered a rally in copper. […]
Several shocks have hit copper supply this year, including a fatal mud slide at American producer Freeport-McMoRan’s vast mine in Indonesia. […]
Rising prices have also come in the context of new entrants to the market. Trading houses including Mercuria have sought to expand their base metals businesses, increasing competition and the amount of speculative copper trading.
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