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.