Copper Prices Skyrocket Amid Global Supply Crunch
Copper prices have reached unprecedented levels due to a growing mismatch between global copper mining and smelting capacity, according to the Indian Primary Copper Producers Association (IPCPA). The London Metal Exchange (LME) saw copper prices touch a record $14,737 per tonne in September 2026, representing a nearly 50% increase over the past year.
The IPCPA attributes this rally to US tariff expectations, tightening mine supply, and significant shifts in global copper inventories. One key factor is the shipping of hundreds of thousands of tonnes of copper to the United States to capitalize on the premium between Comex and LME prices.
Markets continue to price in the possibility of trade restrictions despite the US Department of Commerce's report being overdue by nearly two months. This has led to a concentration of copper stocks in the United States, while global mine output has been slightly lower due to operational challenges at 3-4 key mines across the globe.
The association also notes that China's expansion of smelting capacity is adding pressure to an already constrained supply of copper concentrates. Treatment and Refining Charges (TC/RCs) have plunged to historically unprecedented levels of around negative $1,300 per tonne, compared with positive levels of about $300-400 per tonne earlier.