Copper Prices Climb Above $14,000 Amid Tight Supply

Copper prices have continued to trade near historical highs, reaching $14,070 during the European session on August 14. Despite short-term profit-taking, copper prices have maintained overall strength this year and remain above $14,000.

The core factor supporting the continuous rise in copper prices is tightening global copper supply. LME copper inventories have been declining, and supply tightness in the international spot copper market has intensified. A recent Reuters analysis pointed out that LME inventories are rapidly diminishing, while the cash-to-three-month copper premium has widened, reflecting market participants' willingness to pay higher prices for immediate delivery of copper.

Major global copper mines have been affected by declining ore grades, excessively long approval cycles for new projects, insufficient capital expenditures, and production disruptions in certain mining regions. As a result, rapidly boosting supply in the short term remains difficult. A Reuters survey suggests that the global refined copper market could face a supply deficit of approximately 150,000 metric tons in 2026.

The demand side continues to grow, driven by emerging technologies such as AI data centers, power grid upgrades, electric vehicles, and renewable energy. These sectors require vast amounts of cabling and other copper products, ultimately transmitting AI capital expenditures into industrial metal demand.