Copper prices have reached unprecedented levels, with the London Metal Exchange (LME) 3-month forward copper price setting a new all-time high above USD 14,530 per ton, briefly surpassing the previous record set earlier this year [1]. This surge is primarily attributed to robust demand from the United States, as evidenced by a significant rise in copper inventories on the COMEX, driven by expectations of US Department of Commerce import tariffs that were anticipated to be announced by the end of June but have not yet materialized [1].
Additional upward pressure on copper prices stems from supply disruptions in Chile, the world's largest copper producer, which accounts for approximately a quarter of global mine output [1]. In August, the value of Chilean copper exports dropped to USD 4.62 billion, marking the lowest level since July 2025 and representing a 14% decline from July and a 3.2% decrease compared to the previous year, despite the average copper price in August being over 40% higher than the previous year [1]. These export declines are attributed to operational problems at mines and severe winter storms in July and August, which brought heavy rain, snow, and high winds, disrupting mining activities [1]. Furthermore, rough seas intermittently hampered port operations, exacerbating the supply constraints [1].
The combination of strong US demand and significant supply issues in Chile has provided substantial support for the elevated copper price levels, reinforcing the market's bullish sentiment [1].
CONCLUSION
Copper prices have soared to record highs, fueled by strong US demand and notable supply disruptions in Chile. The market remains supported by these factors, with ongoing operational and weather-related challenges in Chile likely to sustain elevated price levels in the near term.