Copper prices on the Comex hit a fresh record on Wednesday as tightening global supplies and uncertainty over potential US tariffs continued to support the market.
The most-traded September contract rose to an intraday high of US$6.714 ($9.50) per pound, equivalent to about US$14,800 a tonne, before paring gains.
On the London Metal Exchange (LME), copper traded above US$14,400 per tonne, a premium of more than US$200 to later-dated contracts, signalling strong demand for near-term supply.
The rally comes amid growing concerns over the availability of the metal, which is widely used across power infrastructure, construction, and advanced technologies.
Supply concerns build
Chile, the world’s largest copper producer, recently said second-quarter output was expected to fall 2.6% year-on-year, marking a second consecutive quarter of weaker production.
The country’s copper commission, Cochilco, also expects global mine production to grow by just 0.2% this year, leaving the market with little room to absorb further supply disruptions.
Meanwhile, the Gresik smelter in Indonesia, which processes concentrate from the giant Grasberg mine, remains offline, adding further pressure to global supply.
Uncertainty over potential US copper tariffs has also tightened inventories outside the country, as large volumes of metal have been drawn into the US ahead of a decision from Washington.
The combination of tariff speculation and supply concerns has helped drive the stronger gains seen on Comex.
Against this backdrop, Cochilco recently raised its average copper price forecast for 2026 to US$5.95 a pound, up from US$5.55 previously. It maintained its 2027 forecast at US$5.10 per pound.
Write to Jackson Chen at Mining.com.au
Image: London Metal Exchange
