Copper Prices Supported by Supply Concerns

Copper futures held above $6.6 per pound on Thursday, remaining close to record highs as tightening global inventories and persistent supply risks in top producer Chile continued to support prices. Development at the Andes Norte section of Codelco’s flagship El Teniente mine could remain suspended for as long as two years, adding to supply tightness in the global copper market. Across the mining industry, producers are extending operations deeper underground as mature ore bodies become depleted, exposing them to greater geotechnical challenges like those affecting El Teniente. Meanwhile, analysts flagged an increasing risk of a short-term squeeze on the London Metal Exchange, driven by scarce on-warrant inventories, falling visible stockpiles in China, and robust US buying ahead of a possible tariff announcement. Data showed that more than 200,000 tons of copper arrived at US ports in July, marking the largest monthly inflow in over a decade.

Copper futures rose above $6.6 per pound, moving closer to fresh record highs as tightening global supply supported prices. Traders continued to ramp up shipments to the US while drawing down inventories elsewhere ahead of an expected decision by the Trump administration on copper import tariffs. Industry data showed that more than 200,000 tons of copper arrived at US ports in July, marking the largest monthly inflow in over a decade and adding to the substantial stockpiles built up over the past year. Meanwhile, copper inventories across the London Metal Exchange’s warehousing network fell to a five-month low, with traders pointing to increased shipments to China to ease a domestic supply shortage. Copper also remained supported by its strong long-term demand outlook, driven by the global transition to clean energy and the rapid expansion of artificial intelligence data centers.

Copper futures climbed toward $6.6 per pound on Tuesday, reaching their highest level in two months as ongoing supply constraints continued to tighten market conditions. Analysts cited shortages of copper concentrate and scrap copper in top consumer China, driving treatment charges and market spreads higher. Traders also remained cautious over the prospect of new US tariffs on the metal, which has encouraged the diversion of copper shipments into the US. In addition, copper continued to draw support from its favorable long-term demand outlook, fueled by the global shift toward clean energy and the rapid expansion of artificial intelligence data centers. Meanwhile, private data showed China's manufacturing activity slowed to a four-month low in July as output and new orders expanded at a weaker pace, dampening the demand outlook. The Politburo also indicated last week that it would continue relying on existing policy measures instead of rolling out broad-based stimulus.