Copper Prices Hit Record High: $13,000+ Per Tonne

Copper prices surged past $13,000 per ton on Monday, fueled by growing supply concerns following a strike at a Chilean mine, forecasts of a looming deficit, and dwindling inventories in London Metal Exchange-approved warehouses.

The benchmark copper price on the London Metal Exchange (LME) climbed 4.6% to $13,042 per ton at 1709 GMT, after reaching a high of $13,045, or $5.90 per pound – surpassing the previous record of $12,960 per ton set on December 29. The move signals increasing demand and tightening supply dynamics in the critical industrial metal.

In the United States, prices on the Comex market rose 4.6% to a record $5.90 per pound, equivalent to $13,008 per ton.

Traders pointed to a strike at Capstone Copper’s Mantoverde copper and gold mine in northern Chile as reinforcing expectations of scarcity.

The Mantoverde mine is expected to produce between 29,000 and 32,000 metric tons of copper. While this represents a small fraction of the anticipated global mining output of approximately 24 million tons this year, it adds to the prevailing concerns about limited supply.

“We forecast copper demand growth of around 3% in 2026 against refined supply growth of less than 1%, resulting in a deficit of 300,000-400,000 tons, rising to around 500,000 tons in 2027,” analysts at UBS noted in a recent report.

The price increase has also been driven by declining LME inventories, which have fallen by 55% since the end of August to 142,550 tons.

A significant portion of the copper leaving the LME system has been flowing to the United States, where tariffs on the red metal remain under review despite the import duty exemption that took effect on August 1.

Other metals

Elsewhere, aluminum reached $3,093 per ton, its highest level since April 2022, amid concerns about potential shortages, partly due to the 45 million ton production cap imposed in China.

“For the last 20 years, the LME price has been basically dictated by capital costs in China,” said Gregory Wittbecker, president of Wittsend Commodity Advisors. “Now the market has to start thinking about CapEx in places like Indonesia or Finland or India.”

Aluminum rose 2.3% to $3,086, zinc gained 2.5% to $3,204; lead added 1% to $2,026; nickel advanced 2.2% to $17,195; and tin climbed 5.9% to $42,785.