Copper Extends Rally to Sixth Session

Copper futures rose above $6.70 per pound on Tuesday, marking a sixth straight session of gains as supply concerns continued to support prices. Sprott Asset Management said global mined copper output could decline this year for the first time since 2017, despite record prices, due to production disruptions, lower ore grades and weak Chilean output. Global mine production fell 1.1% year over year in the first half of 2026, while disruptions at major mines in Indonesia and the Democratic Republic of Congo cut an estimated 600,000 tonnes from expected annual output. At the same time, demand remains strong from power grids, AI data centers and defense. Traders are also watching US copper tariff plans, with the Commerce Department proposing duties of 15% from January 2027 and 30% from 2028, pending a presidential decision.

Copper futures climbed to around $6.65 per pound on Monday, extending gains for a fifth consecutive session, supported by signs of stronger demand and expectations of tighter global supply. The Yangshan premium, a key gauge of Chinese copper demand, rose to $121 a ton last week, reaching its highest level since November 2022. Copper also benefited from expectations of sustained long-term consumption driven by data centers and renewable energy projects. On the supply side, major producers including Chile, Indonesia and the Democratic Republic of Congo continued to face disruptions at several key mines due to operational issues, fatal accidents and severe storms, among other factors. Meanwhile, traders are closely watching US copper tariff policy and its potential effects on global trade flows.

Copper futures rose above $6.60 per pound on Friday, extending gains for the fourth straight session, supported by signs of stronger demand from China. The Yangshan premium, a key indicator of Chinese copper demand, climbed to $121 a ton on Thursday, reaching its highest level since November 2022. Copper was also supported by expectations of sustained long-term consumption from data centers and renewable energy projects, along with supply disruptions at several major mines. Earlier in the week, however, copper prices dropped to multi-week lows following reports that the Trump administration had postponed a decision on potential tariffs on refined copper. Meanwhile, warehouses monitored by the London Metal Exchange recorded fresh deliveries, with inflows reaching their highest level in nearly four weeks. The increase in inventories pushed London copper into contango, pointing to ample availability in the near term.