Copper prices rise amid Chilean supply disruptions and US tariff uncertainty

Copper prices on the London Metal Exchange (LME) have risen, driven by supply concerns in Chile and shifting global inventory patterns. A landslide at Codelco’s El Teniente mine and ongoing strikes at Antofagasta’s Centinela mine have heightened fears of production disruptions.

Global inventory levels show a significant geographic imbalance. While LME warehouse stocks have dropped to a six-week low, COMEX inventories in the United States have reached record highs. This accumulation in US warehouses is largely attributed to anticipated tariffs on refined copper; market participants are importing supplies ahead of potential duty increases scheduled for 2027.

In China, despite robust demand signals, smelting margins have faced extreme pressure, with some indices showing smelters paying premiums to acquire concentrate. Meanwhile, the market remains sensitive to US policy shifts and geopolitical developments affecting energy costs.