Copper Prices Rise Amid Tight Supply and Disruptions
Copper prices continue to rise due to tight physical supply and potential disruptions. The London Metal Exchange (LME) warehouse stocks fell by 2,425 tonnes today, with another 3,375 tonnes of warrants cancelled. Physical disruption is caused by various factors including Indonesia smelter disruptions, Grasberg's possible copper concentrate exports, sulphur shipments through the Strait of Hormuz on hold, and China's ban on sulphuric acid exports.
Meanwhile, Chile has cut its copper output forecast for a second straight quarter due to weak production in the first half. The country now expects 5.27 million tonnes of copper in 2026, down 2.6% year-over-year (yoy). Cochilco, Chile's state copper commission, raised its 2026 copper price forecast to around $13,100 per tonne from $12,200.