---
title: "Copper prices hit record highs as supply chain tightens"
publisher: "Stockmark.IT"
author: "Stockmark.IT Website"
published: "2026-09-08T07:15:25+00:00"
modified: "2026-09-08T07:15:25+00:00"
date: 2026-09-08
canonical: "https://stockmark.it/coppers-longest-rally-since-1994-collides-with-a-shrinking-supply-chai/"
category: "global markets"
categories: ["global markets"]
image: "https://i0.wp.com/stockmark.it/wp-content/uploads/2026/09/copper-prices-hit-record-highs-as-supply-chain-tightens.png?fit=1536%2C1024&quality=80&ssl=1"
format: "news"
language: "en-GB"
---

# Copper prices hit record highs as supply chain tightens

**Published:** September 8, 2026
**Author:** Stockmark.IT Website
**Categories:** global markets
**Featured image:** ![Copper prices hit record highs as supply chain tightens](https://i0.wp.com/stockmark.it/wp-content/uploads/2026/09/copper-prices-hit-record-highs-as-supply-chain-tightens.png?fit=1536%2C1024&quality=80&ssl=1)

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Copper has secured its longest weekly winning streak since 1994, a rally that is increasingly underpinned by a physical market facing severe inventory constraints. Benchmark prices on the London Metal Exchange recorded a tenth consecutive weekly gain through last Friday, trading near $14,300 a ton. This level places the metal within reach of the record high of $14,527.50 established in January. Simultaneously, prices on the Comex exchange topped $6.70 a pound in August, marking a fresh all-time high. The strength of this price action is reflected in the rapid depletion of stockpiles. LME warehouse stocks fell for 42 straight days through mid-August, representing the longest continuous decline since 2014. Nearly half of the remaining inventory is already earmarked for withdrawal, highlighting the thinning nature of the physical supply available to the market.

The current squeeze has been significantly influenced by a major industrial disaster that occurred exactly one year ago. On September 8, 2025, roughly 800,000 tons of wet material flooded the Grasberg mine in Indonesia, operated by Freeport-McMoRan. As the world’s second-largest copper source, the facility suffered the death of two workers and was forced to declare a force majeure that continues to disrupt the supply chain. Freeport has subsequently cut its 2026 output guidance for the complex by roughly a third. A full recovery of production is not expected before 2027 or 2028, creating a prolonged period of reduced supply from a key global producer.

Broader industry data confirms the tightening of global mine output. The International Copper Study Group reports that global mine production fell by 1.1% in the first half of the year, with both Codelco and Freeport posting double-digit declines. Chile, the world’s top producer, logged its weakest second quarter in at least 19 years and has cut its 2026 forecast twice, now projecting a 2.6% decline. Codelco’s Andes Norte expansion at El Teniente, which was intended to offset losses from a previous fatal tunnel collapse, is not due to reach production until 2029. Evy Hambro of BlackRock described the sector last month as suffering from declining grades and very old assets, noting the age of the infrastructure in place.

Recent regulatory changes have further complicated the supply landscape. In early August, the Democratic Republic of Congo banned exports of copper and cobalt concentrate to force more processing onshore. While this order affects a small slice of the country’s copper trade, most of which already leaves as refined cathode, it still pushed LME prices up by 1.8% the day it became public. Reuters columnist Andy Home characterised the market reaction as proof that the volatility in copper markets is likely to persist. Meanwhile, uncertainty over United States trade policy has driven a massive influx of metal into the domestic market. The Commerce Department’s deadline to recommend whether to extend tariffs on refined copper passed on June 30, but the White House has yet to decide. Traders have moved proactively, with roughly 200,000 tons of refined copper flooding into the U.S. in July alone. This was the largest monthly inflow on record, pushing Comex inventories past 1 million tons as buyers race to beat a possible 15% duty that could take effect as soon as January.

Analysts suggest that while an immediate shortage of refined metal is not expected, mine supply remains the primary concern. Morgan Stanley expects refined output to inch up by almost 1% this year, as smelters lean harder on scrap to compensate for lower mine production. Wall Street remains divided on the severity of the supply deficit. Citigroup sees copper reaching $15,000 a ton by year end, with potential highs of $17,000 if demand from artificial intelligence or a manufacturing rebound outpaces what the ground can deliver. Ruben Fernandes of Anglo American noted that while everyone is investing in the metal, the critical question remains how quickly new supply can be brought online to meet this sustained demand.

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