Copper prices hit a record today primarily due to deepening supply disruptions at major copper mines worldwide combined with strong demand expectations and favorable monetary policy outlooks. These factors have created a tight supply environment that pushed prices to around $11,000 per metric ton, nearing the highest levels seen since May 2024.
Several key mining operations have reported significant production setbacks. For example, Codelco’s El Teniente mine experienced a deadly collapse that severely disrupted output, causing a 25% drop in copper production compared to last year and leading to a downward revision of the company’s 2025 output guidance. Similarly, Freeport-McMoRan declared force majeure at its Grasberg mine in Indonesia due to a blockage that restricted access to underground sections and evacuation routes, further tightening supply. Other mines such as Tech Resources’ Quebrada Blanca and the Collahuasi mine, jointly owned by Anglo-American and Glencore, have also reported lower production due to operational challenges and lower-grade ore, contributing to the overall supply shortfall[1][2][3].
The supply disruptions have been compounded by expectations of increased demand, especially from China, which is a major consumer of copper for construction, manufacturing, and renewable energy infrastructure. Chinese traders returned from a holiday break with a bullish outlook, further driving up prices. The metal’s critical role in green technologies such as electric vehicles and renewable energy systems adds to the demand pressure, as global efforts to transition to cleaner energy sources continue to accelerate[1][2].
Monetary policy expectations have also played a role in supporting copper prices. Markets are anticipating potential interest rate cuts by the US Federal Reserve later this year, which typically boosts commodity prices by lowering borrowing costs and encouraging investment. This expectation has added to the bullish sentiment around copper[1].
The combination of these factors—significant mine production disruptions, strong demand from key markets, and supportive monetary policy outlook—has created a supply-demand imbalance that pushed copper prices to record highs. The London Metal Exchange benchmark price surged by over 3% in a single day, reaching $11,000 per metric ton, close to the record high of $11,104.50 set in May 2024[2][3].
In addition to copper, other metals like silver have also seen significant price increases, reflecting broader investor interest in industrial and precious metals amid supply concerns and economic uncertainties. Silver prices recently surpassed $50 per ounce for the first time since 1980, highlighting a parallel surge in metals markets[2].
Overall, the record copper price reflects a complex interplay of supply chain disruptions at major mines, robust demand driven by industrial and green energy needs, and macroeconomic factors influencing investor behavior and market expectations.