Copper Prices Soar as Mining-Smelting Mismatch Exposes Global Shortage
The global copper market is facing a severe shortage due to a mismatch between mining and smelting capacity. According to the Indian Primary Copper Producers Association (IPCPA), this has led to a significant increase in copper prices, with the London Metal Exchange (LME) recording a record high of USD 14,737 per tonne in September 2026.
The IPCPA attributes the rally to several factors, including US tariff expectations, tightening mine supply, and shifting inventories. The association notes that hundreds of thousands of tonnes of copper have been shipped to the United States to capitalize on the premium between Comex and LME prices.
Markets are pricing in the possibility of trade restrictions, keeping copper prices elevated. The resulting movement in inventories has tightened copper availability globally, with Comex stocks rising to a record 675,000 tonnes while LME warehouse inventories have fallen to critically low levels.