Copper Hits Record Price as Mine Supply Falls
Copper prices have reached an all-time high of $14,533 per metric ton on the London Metal Exchange (LME), marking a historic milestone for the base metal. The record price level is up about 17% from last year and is driven by a deep-seated mismatch between constrained supply and long-term electrification demand.
The LME benchmark three-month futures price has climbed to this peak, while global mine output fell 1.1% in the first half of the year, according to the International Copper Study Group (ICSG). This is the first annual supply contraction since 2017.
Chile, which accounts for roughly a quarter of global mined output, posted its weakest second-quarter production in at least 19 years due to severe winter storms and declining ore grades. Leading operators such as Codelco and Freeport-McMoRan Inc. registered double-digit production declines amid accidents and weather events.
Citigroup forecasts that copper prices will reach $15,000 per ton by year-end, while Morgan Stanley expects refined output to rise about 0.9% despite flat mine supply.