Copper prices hit record highs amid Chilean production decline

Copper prices have reached record highs, with the metal hitting approximately US$14,800 per ton on the London Metal Exchange. This rally is driven by tight global supply and low inventories outside of the United States.

Chile, the world's largest copper producer, is facing a projected 2.6% decline in production for 2026, with Cochilco forecasting output at 5.27 million tons. This downturn is attributed to a weak first half of the year, characterized by lower production levels at major operations such as Codelco, Escondida, and Spence, alongside structural and meteorological constraints.

The supply tightening has led the International Copper Study Group (ICSG) to reduce its global mining production growth forecast for 2026 from 2.3% to 1.6%. Market analysts note that while significant stocks exist in the US, availability in London and Shanghai remains critically low, supporting the upward price trend.