Copper price touches fresh Comex record as squeeze in London hits hardest of the year

Copper prices soared to a fresh Comex record on Wednesday, driven by a lack of inflation data signaling a possible pause in interest rate hikes and a physical copper shortage in London. September copper settled at $6.7140 a pound, breaking the previous record set on August 5. The December contract climbed to $6.8070, while copper for 2027 delivery reached $7.0280 per pound.

In London, cash copper sold at $14,424.50 a tonne, a hefty $207.50 premium over the three-month contract. The London Metal Exchange's warehouse stocks plummeted by 35,000 tonnes, or 14%, since the end of July.

LME copper prices now trade around $14,625 a tonne, about $400 higher than the London three-month price. Chile's copper production outlook was slashed for a second consecutive quarter as output faltered at major mines. Indonesia's Gresik smelter, treating ore from Grasberg, remains offline after a boiler leak on August 8. Bougainville's government has greenlit India's Lloyds Metals & Energy to conduct feasibility work at the Panguna mine, which has lain dormant since 1989 due to environmental concerns and a civil war that claimed up to 20,000 lives. The mine holds 5.3 million tonnes of copper and 19.3 million ounces of gold.

Bougainville's move brought in Lloyds, an iron ore producer, which outbid China's CMOC Group. Construction and production approvals are pending, with CEO Rajesh Gupta stating the project remains under review. SM Investments, a Philippine company, sold its 34% stake in Atlas Consolidated Mining and Development to Dominion Holdings, potentially resurrecting the Philippines' largest copper and gold deposit.

Tampakan, slated to begin production in 2028, would yield 375,000 tonnes of copper and 360,000 ounces of gold annually over 17 years. Dominion's shares jumped 821% in 2026, outpacing a 5.2% gain for the Philippine index.

Sweden's government upheld Boliden's mining concession at Laver, allowing the company to apply for an environmental permit at a site holding 849.5 million tonnes of copper, or roughly 2 million tonnes of contained metal. The deposit could double Sweden's copper output and boost Europe's self-sufficiency in the metal by nearly 10%. The concession, granted in September 2025, has been under appeal since.

In the wider mining sector, miners have trailed gold stocks, with gains ranging from 6% to 18% compared to gold's 47% surge. Copper prices have climbed 18% in 2026 and 47% over the past year.