14 hrs ago
Record Copper Rally Exposes Global Mining-Smelting Capacity Mismatch
Copper prices have climbed to record levels because the world is not mining enough copper to supply all the smelters.
The Indian Primary Copper Producers Association says this problem is being made worse by new smelting capacity, especially in China.
Several large mines have also faced operating problems.
Many shipments have gone to the United States because copper prices there are higher.
This has made United States inventories very large while stocks in London warehouses have become very low.
The market is also worried that the United States could impose tariffs on imported copper.
Smelters are paying less to process copper concentrate because there is not enough raw material for all of them.
Copper is important for power grids, electric vehicles, renewable energy and construction, so the association says the supply gap needs to be addressed.
London Metal Exchange copper prices reached a record $14,737 per tonne in September 2026, nearly 50% above the previous year.
The Indian Primary Copper Producers Association linked rising prices to tighter mine supply, tariff expectations and changing inventories.
Comex stocks rose to a record 675,000 tonnes, while London Metal Exchange warehouse inventories fell to critically low levels.
Operational problems at three to four major mines have weakened global mine output, while China continues expanding smelting capacity.
Treatment and refining charges fell from roughly $300-$400 per tonne to about negative $1,300, signaling intense competition for copper concentrates.
- Who
- The Indian Primary Copper Producers Association, representing major Indian copper producers, described the market pressures.
- What
- Copper prices reached record levels amid a mismatch between global mining output and smelting capacity.
- Where
- The effects are being seen across global markets, including the London Metal Exchange, Comex, the United States and China.
- When
- Copper reached $14,737 per tonne in September 2026; the article also describes developments since the start of 2026.
- Why
- Expectations of United States tariffs, mine disruptions, inventory shifts and expanding smelting capacity have tightened copper concentrate supplies.
Key facts
- Record price
- $14,737 per tonne on the London Metal Exchange in September 2026
- Annual price increase
- Nearly 50% over the previous year
- Comex inventories
- A record 675,000 tonnes
- Treatment and refining charges
- About negative $1,300 per tonne, down from roughly positive $300-$400
- Mine output
- Slightly weaker because of operational challenges at three to four major mines
- Key processing trend
- China continues expanding copper smelting capacity
- Industry body
- The Indian Primary Copper Producers Association represents Hindalco Industries, Hindustan Copper Limited, Adani Kutch Copper and Vedanta’s Sterlite Copper
Sources
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