Copper Prices Hit Record Highs Amid Supply Squeeze

Antofagasta has reduced its annual copper production forecast due to severe weather at its flagship mine in Chile. The company now expects to produce between 625,000 and 655,000 metric tons of copper this year, down from an initial target of 650,000 to 700,000 metric tons.

The downgrade follows a shutdown at the Los Pelambres operation due to extreme rain and snow. Higher realized copper prices, however, drove a 27 percent increase in Antofagasta's H1 earnings before interest, taxes, depreciation, and amortization.

Copper prices have reached record highs, with Comex futures reaching $6.77 per pound on August 7. The London Metal Exchange also saw its three-month copper contracts hit a record of $14,258 per metric ton that day.

The Democratic Republic of Congo has imposed an export ban on copper and cobalt concentrates, adding to the supply anxiety in the market. Smelter processing fees have turned negative due to fierce competition for concentrate, while LME warehouse stocks have plummeted from 401,000 metric tons in early May to 214,550 metric tons.