Copper Prices Surge Amid Supply Disruptions, Mining Stocks Poised for Upside

LME copper prices have risen to $14,396 per ton on Monday, with the spot premium surging to its highest level since 2021. This is due in part to persistent supply-side disruptions and rising speculative long positions.

Chile's copper output fell by 6.7% year-on-year from January to June this year, prompting the Chilean Copper Commission (Cochilco) to lower its 2026 production forecast by 2.6% to 5.27 million tonnes. Antofagasta has also lowered its full-year production guidance by approximately 5% after severe weather disrupted operations at its Los Pelambres mine.

LME inventories have plummeted by 32% from a month ago to 205,000 tonnes, further exacerbating the spot shortage on the exchange. Analysts believe that mining stocks still have room for upside as copper prices approach historical highs.