Copper prices hit record 14,737 dollars per tonne
London Metal Exchange benchmarks reached an all-time high of 14,737 USD per tonne in September 2026. The price increase represents a 50 percent rise over the previous twelve months. This surge reflects a structural imbalance in the global supply chain.
Copper prices on the London Metal Exchange reached a record 14,737 USD per tonne in September 2026. This level marks a 50 percent increase from the same period last year. The Indian Primary Copper Producers Association cites a mismatch between mining and smelting as the primary driver. They note that mine supply has tightened while inventories have shifted geographically.
US tariff expectations have altered global trade flows. Hundreds of thousands of tonnes of copper shipped to the United States to capture price premiums. This movement occurred despite the US Department of Commerce report being overdue by two months. Markets continue to price in potential trade restrictions, keeping bid levels high.
Inventory concentration in US markets
Comex stocks rose to a record 675,000 tonnes. LME warehouse inventories fell to critically low levels. This divergence indicates a geographic concentration of physical metal. Operational challenges at three to four key mines reduced global output. The result is a tighter physical market outside the US.
China expanded its smelting capacity during this period. This expansion increased demand for copper concentrates. The supply of these raw materials remained constrained. Smelters face significant financial pressure as input costs rise. The imbalance strains the refining sector globally.
Smelting charges turn deeply negative
Treatment and Refining Charges dropped to negative 1,300 USD per tonne. Previous levels hovered around positive 300 to 400 USD per tonne. This shift reflects the severe stress on smelting margins. The negative charge means smelters pay miners for the privilege of processing ore. This dynamic highlights the widening gap between mining and refining capacities.
The Indian Primary Copper Producers Association describes these trends as structural challenges. They include major producers like Hindalco and Vedanta. The association links this mismatch to the energy transition. Industrial growth and electrification require stable copper supply. The current market structure threatens the stability of these critical sectors.
Strategic role in energy transition
Copper serves as a critical input for electrification projects. The current price volatility impacts downstream industrial planning. The mismatch between mine supply and smelting demand creates persistent risk. Market participants monitor these figures closely for future investment decisions. The data from GN auto markets/commodities: copper prices confirms the severity of the current supply squeeze.
