Copper Prices Soar to Record High on Supply Shortages
Copper prices have reached a record high of $14,201/tonne on the London Metal Exchange (LME), up 0.7% and marking a sixth straight weekly gain.
The rally is driven by supply shortages rather than stronger demand, according to Bank of America (BofA). Weak mine growth and disruptions in Chile, the world's largest copper-producing region, are contributing to the shortage.
Antofagasta's first-half output fell 9.5% to 285,000 tonnes due to heavy snow, rain, and high winds forcing Codelco, Antofagasta, and Anglo American to limit mining activity in Chile.
The LME cash-to-three-month spread has widened beyond $150/tonne, its highest since October 2025, indicating that buyers are paying a premium for immediate delivery. The spread remains elevated, benefiting producers while raising costs for downstream fabricators.