Copper Market Faces Supply Puzzle Amid Price Surge
The global copper market is facing a supply puzzle that has led to a significant surge in prices. According to the Indian Primary Copper Producers Association (IPCPA), there is a mismatch between global copper mining and smelting capacities, driving up copper prices. The London Metal Exchange reported a historic price of USD 14,737 per tonne in September 2026, marking a 50% increase from the previous year.
The IPCPA attributes this price rally to several factors, including expectations of U.S. tariffs and tightened mine supplies. Global inventory shifts have also contributed to the shortage, with substantial copper shipments targeting the United States to benefit from price premiums against Comex and LME. As a result, global copper availability has been strained, with Comex stocks reaching 675,000 tonnes while LME inventories dwindle.
Operational challenges at major mines have further slowed global output, particularly in China where smelting capacity is expanding. This expansion has impacted treatment charges and smelter finances, exacerbating the supply puzzle. The IPCPA's warning highlights the need for more transparency and cooperation in the copper market to address these issues.