Copper edges up on mine supply disruption, tight stocks

Copper prices climbed for the third day in a row on Tuesday, as worries over a potential supply crunch kept the metal close to a record high. The benchmark three-month copper on the London Metal Exchange climbed 0.1% to $14,636.50 per metric ton, nearing the peak price of $14,875 seen the previous month. Concerns over supply disruptions persisted following a landslide that temporarily halted operations at Chile’s Codelco’s El Teniente mine, as well as ongoing strike talks between Antofagasta’s Centinela copper mine and two unions.

Sucden Financial noted in a note that copper's resilience to a stronger dollar is due to tightness in the physical market and shrinking exchange inventories. The dollar remained stable but held near an 18-month high. Disruptions to copper production in 2025-26, including the Grasberg mine in Indonesia and Kamoa-Kakula in the Democratic Republic of Congo, account for 350,000-400,000 tons per year of copper, which is a small fraction compared to the overall published disruption allowances.

Panmure Liberum suggested that speculative and financial factors are likely driving the price of copper. LME copper stocks fell by 1,625 tons to 232,275 tons, falling below US inventory levels. The cash LME copper contract was trading at a $181.50 premium to the three-month forward, signaling limited near-term availability. Aluminium prices dropped 0.6% to $3,035.50 per ton, nearing an eight-month low, while zinc declined 0.4% to $3,741.50 and lead rose 0.6% to $1,894.50. Nickel remained flat at $15,620, while tin decreased slightly by 0.2% to $53,000.