Copper Edges Higher on Supply Concerns

Copper futures climbed above $6.6 per pound on Tuesday, rising for a second straight session, supported by signs of tightening global supply and expectations for constrained mine output. Traders remained cautious over potential US import tariffs on copper, which have continued to redirect metal from international markets into US warehouses. The Democratic Republic of Congo also recently imposed an export ban on copper concentrate, although the move is unlikely to have a major impact on global supplies. Meanwhile, the long-term outlook for copper extraction and production is becoming increasingly constrained by declining ore grades, environmental regulations and geopolitical risks. On the demand side, copper continues to benefit from robust consumption driven by the global shift toward electrification and the expansion of artificial intelligence data centers.

Copper futures slipped below $6.6 per pound on Monday, retreating from record levels reached last week as traders took profits while weighing signs of tightening global supply. Concerns over potential supply disruptions from the Democratic Republic of Congo’s copper concentrate export ban also eased, with Goldman Sachs saying it expected the measure to have no significant impact on global copper balances. However, traders remained cautious over possible US import tariffs on copper, which continued to redirect metal from international markets into US warehouses. On the demand front, data released over the weekend showed both consumer and producer inflation in top consumer China slowed in July, pointing to persistently weak domestic demand. Data on Friday also showed China’s imports of unwrought copper and copper products dropped 11.5% year on year to 425,000 tonnes in July, while imports for January-July fell 6.2% to 2.92 million tonnes.

Copper futures climbed above $6.7 per pound on Friday, reaching fresh record highs as mounting global supply risks continued to support the market. The Democratic Republic of Congo has banned exports of copper concentrates, highlighting a growing trend among resource-rich nations to retain more value by expanding domestic refining and processing capacity. Concerns over potential US import tariffs on copper also continued to divert supplies from international markets into US warehouses. Meanwhile, operations at part of Codelco’s flagship El Teniente mine could remain suspended for up to two years, adding to supply concerns. On the demand side, copper remained supported by a strong outlook for power grid upgrades and data center expansion as the global shift toward electrification and artificial intelligence continued to drive consumption.