Copper Prices Soar Past $14,800 as Supply Crunch Bites
Copper prices have surged past $14,800 per tonne on the Comex, with softer US inflation easing fears of interest rate hikes. The physical market is also sending a stronger signal, as inventories in London continue to fall.
The LME copper premium has widened, with buyers paying more for immediate metal than for future delivery. Cash copper on the London Metal Exchange settled at $14,424.50 per tonne, compared to $14,217 for the three-month contract.
Copper producers are struggling to boost output quickly enough to meet market needs, with Chile's Codelco facing aging operations and high debt. The International Copper Study Group expects global mine production to grow just 1.6% in 2026, down from an earlier forecast of 2.3%.
The growth of artificial intelligence is creating additional demand for copper, particularly for electricity-intensive computing equipment and transmission infrastructure. Major producers such as Southern Copper Corporation are benefiting from the higher prices, with revenue up 41% year over year in the second quarter of 2026.