Copper Prices Near Record Highs as Supply Constraints Persist
Copper prices are trading near record highs due to persistent supply constraints and robust demand. Tight mine supply, low inventories, and steady industrial demand have driven up copper futures on the London Metal Exchange to around $10,000 per tonne.
Recent months have seen several high-profile supply disruptions at major copper producers in Chile and Peru, forcing miners to lower their output guidance. Global copper inventories have also fallen to multi-year lows, reflecting strong demand from sectors like electric vehicles, renewable energy, and grid infrastructure.
ING attributes the strength in copper to a combination of tight mine supply and steady industrial demand. The market has been grappling with disruptions at key mines and a lack of major new projects coming online, keeping the market in a deficit.