Copper Prices Consolidate Near Record Highs Amid Supply Shortages

Copper prices are consolidating near record highs as demand outpaces supply. The London Metal Exchange (LME) three-month price closed at $14,215.50 per tonne on August 23, 2026, just below January's record of $14,527.50 per tonne.

The International Energy Agency (IEA) projects a 25% primary supply deficit by 2035 due to declining ore grades and decreased discovery rates. Only 5% of deposits found in the last 35 years were located in the last decade.

Bank of America targets copper above $15,200 per tonne in 2027, while UBS projects a widening refined supply shortfall from 219,000 tonnes this year to 379,000 tonnes in 2027. S&P Global's review of 573 feasibility studies shows that the price buffer built into project assumptions has collapsed to an 18% discount in 2026.

The near-term picture has deteriorated further with mine disruptions removing 1.5 million tonnes of supply in 2025, more than 6% of global mined output. A confirmed break below $6.50 per pound targets $6.28 and then $6.00, or a broader correction toward the $8,500 to $9,000 per tonne range flagged by S&P Global.