Copper Prices Below Record Levels

Copper futures fell to around $6.5 per pound, extending their retreat from record highs of $6.8 per pound early in the month, as softening economic data from top consumer China weighed on the demand outlook. Industrial profits in China increased 15.7% in the first eight months from a year earlier, slowing from a 17.6% rise during January-July. Meanwhile, supply concerns are reemerging after workers at Antofagasta’s Centinela site in Chile rejected the company’s final wage offer, paving the way for a strike. Last week, Operations at BHP’s Escondida copper mine in Chile, the world’s largest, were suspended after an accident killed a worker but operations are being resumed progressively. Copper prices are on track for a nearly 6% rise for Q3 with physical markets showing signs of tightness, and vast amounts of refined material stockpiled in US warehouses on expectations that the Trump administration will introduce a tariff on imports.

Copper futures fell to around $6.55 per pound, extending their retreat from record highs as softening economic data from top consumer China weighed on the demand outlook. Industrial profits in China increased 15.7% in the first eight months from a year earlier, slowing from a 17.6% rise during January-July as subdued domestic demand offset strength in high-tech and AI-related manufacturing. On a monthly basis, industrial profits rose just 4.2% in August year-on-year, marking the slowest growth since November 2025. Last week, copper prices surged to fresh records as supply disruptions and tariff concerns fueled the rally. Operations at BHP’s Escondida copper mine in Chile, the world’s largest, were suspended indefinitely after an accident killed a worker. Meanwhile, the Trump administration has yet to decide on imposing US tariffs on refined copper, leaving markets focused on the potential policy move.

Copper futures in the US traded near $6.70 per pound, remaining close to the record high of $6.80 touched on September 8th, amid sharp setbacks to global supply and robust demand from electrification. Operations were suspended without a timeline for restart at BHP's Escondida copper mine in Chile—the largest in the world—after an accident resulted in the death of a worker, raising the risk of strikes while union members were already in contract negotiations with the mining giant. The disruption magnifies supply pressures as multiple refineries in China schedule maintenance at the start of the fourth quarter. Consequently, the copper prompt spread on the LME widened to its highest level so far this month. Meanwhile, manufacturing activity in the US surged during September, reflecting solid demand for the base metal. Longer-term demand is also underpinned by soaring orders for global electrification projects, including data centers in the US and energy storage infrastructure in China.