Copper Prices Soar Amid Supply Chain Woes
Copper prices have reached record highs, with three-month metal on the London Metal Exchange (LME) trading at $14,779 a ton. The price surge is not attributed to tariffs, as some may claim, but rather to supply chain issues.
The International Copper Study Group (ICSG) reports that global mine production fell 1.1% in the first half of 2026. Output dropped in major producers such as Chile, Indonesia, and the Democratic Republic of Congo. Chile, the world's largest producer, posted its weakest second quarter in at least 19 years and cut its full-year forecast for a second consecutive quarter.
Morgan Stanley initially expected mine supply to expand but now projects production running flat or slightly lower, marking the first annual decline in global copper mine supply since 2017. The industry's struggle to find new deposits is also concerning, with S&P Global Market Intelligence tracking major copper discoveries back to 1990.