Copper rose for a sixth consecutive session on Tuesday as tightening physical supply and seasonal buying in China provided fresh support for the industrial metal.
The benchmark three-month contract on the London Metal Exchange (LME) gained 0.8% to around US$14,760 ($20,770) a tonne, extending Monday’s advance.
On Comex, the most-traded December futures contract climbed 1.5% to more than US$6.87 per pound, widening its premium over LME to around US$300 a tonne.
Copper prices on both sides of the Atlantic are now approaching their respective record highs set earlier this month.
The earlier rally was largely driven by expectations that the US could impose tariffs on refined copper, creating an incentive to ship metal into the country and tightening supplies elsewhere.
That trade briefly lost momentum following reports that US officials were concerned about the potential impact of tariffs on domestic manufacturing costs.
However, copper has since regained ground as stronger Chinese demand shifts attention back towards physical market conditions.
China inventories tighten
According to Shanghai Metals Market (SMM), spot supplies have been constrained by strong direct shipments to fabricators and seasonal restocking ahead of China’s October holiday period.
Copper cathode inventories in Shanghai, a major trading and consumption hub, fell to 43,900 tonnes, their lowest level since 2023, according to SMM data released on Monday.
“Copper is finding support from tightening physical market conditions in China,” ING (AMS:INGA) Commodities Strategist Ewa Manthey told Reuters.
Manthey says falling inventories, seasonal restocking demand, and constrained spot availability are helping offset uncertainty surrounding potential US tariffs.
“Chinese are buying ahead of holidays and smelter shutdowns,” Metal Intelligence Centre Head of Research Sandeep Daga says.
Supply concerns remain
Persistent concerns over global mine supply are also keeping copper prices elevated.
Apollo Global Management (NYSE:APO) has warned of a potential supply shortfall as major copper discoveries have become increasingly scarce over the past three decades.
Major discoveries, defined as deposits containing at least 500,000 tonnes of copper, have fallen from double digits annually during parts of the 1990s and 2000s to just one or two in recent years, with none recorded in 2025, according to Apollo.
The decline comes as copper demand is expected to increase due to electrification, power grid investment, AI infrastructure, data centres, and advanced manufacturing.
With the industry searching for new sources of supply, explorers across North America are stepping up work on copper projects.
Explorers target new supply
In Nevada, Copper One Resources (CSE:CEXY) is ramping up exploration at its district-scale Majuba Hill Project, which historically produced 2.8 million pounds of copper.
The company recently expanded its drilling program to test additional targets as it works towards delineating a mineral resource estimate (MRE).
“With copper demand continuing to accelerate from electrification, AI infrastructure, data centres, grid modernisation, and advanced manufacturing, we believe Majuba Hill is well positioned to become an increasingly important North American copper project,” Copper One CEO David Greenway says.
One company already producing copper in the US is Gunnison Copper (TSX:GCU), whose Johnson Camp Mine in Arizona has just reached commercial production. The company is also advancing another copper project in the state.
In British Columbia, Canada, Kodiak Copper (TSX-V:KDK) is expanding drilling at its MPD Copper-Gold Porphyry Project as it seeks to grow the project’s maiden mineral resource.
Meanwhile, Power Metallic Mines (TSX-V:PNPN) is advancing its polymetallic Nisk Project in Québec following the recent release of a new MRE. The company previously reported its deepest assay results to date from the Lion zone, including an intersection grading 7.95% copper equivalent.
Write to Jackson Chen at Mining.com.au
Main Image: Codelco
