Copper Hits a Record as Supply Snarls Set the Stage for Deficits

Group 1: Market Overview - Copper prices reached a record high of $11,200 per ton on the London Metal Exchange, driven by easing US-China tensions and supply setbacks [1][2] - Year-to-date, copper has increased by over 25%, positioning it for its best performance since 2017 [1] Group 2: Supply Chain Challenges - Major mining disruptions in Chile, Africa, and Indonesia have significantly impacted global copper supplies [2][6] - The global copper market is projected to face its most severe deficit in over 20 years by 2026, as American inventories are effectively stranded [5] Group 3: Trade Policies and Market Dynamics - US tariff policies have caused price distortions, with traders previously importing large quantities of copper into the US in anticipation of proposed levies [4] - The decision to exempt commodity-grade copper from tariffs has led to increased demand in the US, further straining supply for other markets [4][5] Group 4: Production Issues - The copper industry has faced significant production challenges in 2025, with major incidents reported by Freeport McMoRan Inc, Ivanhoe Mines Ltd, and Codelco [6] - Global annual copper production is expected to contract for the first time since the pandemic began, according to CRU [7]