Copper futures traded above $6.60 per pound on Thursday, hovering near record highs as shrinking global inventories and ongoing supply risks in top producer Chile continued to underpin prices. Production at the Andes Norte section of Codelco’s flagship El Teniente mine could remain halted for up to two years, further tightening supply in the global copper market.
More broadly, mining companies are pushing operations deeper underground as mature ore bodies are depleted, increasing exposure to geotechnical challenges similar to those affecting El Teniente. At the same time, analysts warned of a rising risk of a short-term squeeze on the London Metal Exchange, driven by limited on-warrant inventories, declining visible stockpiles in China, and strong US demand ahead of a potential tariff announcement.
Recent data showed that over 200,000 tons of copper arrived at US ports in July, the largest monthly inflow in more than a decade.