Copper Prices Hit Record High as Supply Shortages Bite
Copper prices have reached an all-time high on the Comex market, exceeding $6.7045 per pound set in August. The surge can be attributed to a combination of factors, including a tame US inflation reading and a physical shortage in London that has pushed the premium for immediate delivery to its widest this year.
As of Tuesday, cash copper on the London Metal Exchange settled at $14,424.50 per tonne, with buyers paying up for metal now rather than later due to supply constraints. This backwardation is the largest of 2026, increasing from $138 the day before and $34 in late July.
Meanwhile, warehouse stocks on the LME have plummeted by over 35,000 tonnes, or 14%, since the end of July, further exacerbating the supply shortage. The situation is expected to worsen as Chile has lowered its copper production forecast for a second consecutive quarter due to output declines at several major mines.
Other developments in the copper market include news from Papua New Guinea, where India's Lloyds Metals & Energy has been granted permission to conduct preparatory work at the Panguna mine. The project is expected to unlock 5.3 million tonnes of copper and 19.3 million ounces of gold worth approximately $160 billion at current prices.