Copper Prices Soar as Supply Dips and Demand Rises

Copper prices have been on the rise, reaching $14,500 per tonne on the London Metal Exchange (LME). In fact, prices have increased by 16-17% in 2026 and a staggering nearly 48% over the last year.

The main reason behind this surge is a combination of declining copper production and rising demand. Chile, the world's largest producer of copper, accounting for nearly a quarter of global output, has seen its copper production fall by 2.6% this year to 5.3 million tonnes due to various troubles in its mines.

The El Teniente mine, Codelco's flagship and the country's largest copper mining company, experienced a fatal rockburst and tunnel collapse last year that killed six workers and halted mining operations. Additionally, even after partially reopening, it had to stop expansion work due to seismic risks, leading to reduced production over the next five years.

The shortage of sulphuric acid, necessary for extracting copper from low-grade ores, is another issue affecting global production. China's halt on sulphuric acid exports has significantly impacted this supply chain, resulting in a 1.5 lakh tonnes deficit this year.