Copper prices hit Comex record amid global supply squeeze

Copper prices reached a new record on the Comex, with September delivery touching $6.7140 per pound. This surge is driven by a physical supply shortage and easing concerns regarding US interest rates following moderate inflation data.

On the London Metal Exchange (LME), a significant squeeze has occurred, with the premium for immediate delivery reaching its widest level of the year. LME warehouse stocks have declined by approximately 14% since the end of July.

Supply constraints are being exacerbated by several factors: Chile has lowered its copper production forecasts for the second consecutive quarter, and the Gresik smelter in Indonesia, which processes ore from the Grasberg mine, remains offline following a boiler leak. Additionally, the Grasberg mine is still working toward full production following a previous mudslide.

In Papua New Guinea, the autonomous government of Bougainville has authorized India’s Lloyds Metals & Energy to conduct feasibility work at the Panguna mine. The site, which has been closed since 1989, contains significant copper and gold reserves estimated to be worth roughly $160 billion.