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| Copper prices |
Copper prices paused just below all-time records on Wednesday following aggressive rallies driven by speculative capital and US trade policy shifts. Comex copper for December delivery eased slightly to $6.8545 a pound after touching a record $6.8730, while London Metal Exchange contracts dipped to $14,645.50 per tonne. Traders continue shipping massive volumes to North America ahead of potential import tariffs slated for January 2027. Consequently, Comex warehouses now hold a record 695,624 tonnes while international exchange inventories remain heavily skewed toward the US.
Mine Supply Constraints and SX-EW Revival
Global mine production faces its first annual drop since 2017, prompting producers to restart mothballed leaching operations to capture high market returns. International Copper Study Group data shows world mine output fell 1.1% in the first half of 2026 due to disruptions in Chile, Indonesia, and the Democratic Republic of Congo. Consequently, joint ventures like Collahuasi are reviving solvent extraction-electrowinning facilities. However, surging sulphuric acid prices driven by Middle East conflicts continue to challenge operating margins.
ScrapInsight Commentary
Aggressive US import hoarding has completely inverted global copper inventories, decoupling exchange stocks from underlying regional demand. With mine supply contracting, market volatility will persist around upcoming US tariff announcements.
