Copper Prices Soar Above $14,000 as Supply Squeeze Takes Hold

Copper prices have surged above $14,000 per ton due to supply shortages caused by several factors. ANZ Research has flagged a sudden tightening of copper supplies following Congo's export ban on copper concentrate.

The research firm also points to weaker mine supply from Chile and Peru, as well as a 3% drop in China's refined copper output to 1.1 million tons in June compared to the same period last year.

This combination of bottlenecks is expected to lead to a 3% decline in South American production this year to 8.5 million tons, according to ANZ Research.

The cash-to-three-month spread on copper futures has blown out to $400 per ton, indicating that buyers are willing to pay a premium for immediate delivery.