Copper Prices Soar to Record $14,533 Amid Surplus and Supply Chain Constraints

Copper prices reached a new record of $14,533 per metric ton on the London Metal Exchange, surpassing January's peak of $14,527.50.

This development appears to contradict the notion that copper is in short supply, as global mine output fell 1.1% and concentrate production declined 2.6% in the first half of the year.

The International Copper Study Group reported a preliminary refined surplus of about 131,000 tons, up from 114,000 tons a year earlier, with China and the Democratic Republic of Congo leading the increase in refined production.

However, this surplus is largely concentrated in U.S. warehouses, with COMEX stocks reaching a record 766,795 short tons. Outside of the U.S., Shanghai Futures Exchange warehouse stocks have dropped to 63,000 tons, down 85% since mid-March.