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Copper prices hit a record on Wednesday as disruptions at large mines and a string of disappointing forecasts from big producers deepened fears of a supply shortage.
The London benchmark price of the industrial metal, which is used in sectors from construction to electric vehicles, rose 1 per cent to $11,137 a tonne, surpassing a previous record of $11,104 set in May 2024.
A combination of Donald Trump’s tariffs on the metal, ageing mines and production disruptions at some of the world’s biggest mines has powered a rally in copper.
Analysts at Jefferies said this month that recent copper production had been hit by “operational challenges at some major mines”, noting that there would be “sizeable deficits in the copper market” over the coming year.
Several shocks have hit copper supply this year, including a fatal mud slide at American producer Freeport-McMoRan’s vast mine in Indonesia.
The company said this month that production at the Grasberg mine remained suspended and that output next year would be materially lower.
Several large producers have also warned that production would be lower next year.
On Wednesday, London-listed Glencore reported a 17 per cent drop in copper production in the first nine months of the year and lowered the top end of its forecast for the whole year.
Glencore’s move comes on top of a warning this month from Chilean miner Antofagasta that production in 2025 would be at the lower end of its previous forecast. Its projections for next year also disappointed investors.
Copper’s new record caps a tumultuous year for the metal. Physical copper flooded into the US market ahead of the imposition of levies, squeezing stocks elsewhere.
Stocks of copper in US Comex warehouses outstrip stocks held in warehouses at the LME and Shanghai Futures Exchange combined.
