Copper climbs to record high above USD13,000 after strike at Chilean mine

LONDON: Copper prices crossed USD13,000 a ton for the first time on Monday as concerns about supplies intensified following a strike at a Chilean mine, forecasts for deficits and low stocks in London Metal Exchange-approved warehouses.

Benchmark copper on the London Metal Exchange rose as much as 4.4percent to USD13,020 a metric ton, beating the previous record high of USD12,960 set on December 29.

The metal used in power and construction was trading at USD13,006 as of 1350 GMT, having only passed USD12,000 for the first time on December 23.

In the United States, Comex copper prices surged 4.6percent to a record USD5.90 per lb.

Traders said a strike at Capstone Copper’s Mantoverde copper and gold mine in northern Chile had reinforced the theme of shortages.

The Mantoverde mine is expected to produce between 29,000 and 32,000 metric tons of copper.

While this is only a fraction of the global mined production forecast of around 24 million tons this year, it reinforces expectations of shortfalls. “We forecast 2026 copper demand growth of about 3percent versus refined supply growth of less than 1percent, resulting in a 300,000-400,000 ton deficit that lifts to about 500,000 tons in 2027,” analysts at UBS said in a note.

Fuelling the copper price rise is a drop in LME stocks, which at 142,550 tons are down 55percent since late August. Much of the copper leaving the LME system has gone to the United States, where copper tariffs remain under review even as copper was given an exemption from import levies that came into force on August 1.

Elsewhere, aluminium touched USD3,077.50 a ton, its highest since April 2022, due to worries about potential shortages, partly due to China’s 45 million-ton output cap.

Aluminium was later up 2.1percent at USD3,076.50, while zinc gained 2.1 percent to USD3,193.50 and lead rose 0.6percent to USD2,018. Nickel firmed 0.6percent to USD16,910 and tin climbed 5percent to USD42,440.

Traders short-covering in a low-volume market were behind tin’s big advance.