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Copper Sets New LME Record as Supply Squeeze Meets Trade, Rate Optimism

Fresh production downgrades plus a projected deficit sharpen tightness, with analysts questioning the rally’s staying power.

Overview

  • LME three-month copper rose as high as about $11,200 a ton, topping the May 2024 peak and trading near $11,191 in London.
  • Glencore cut full-year output guidance after reporting lower nine-month production, adding to earlier reductions by Anglo American and to mine accidents in Chile and Indonesia.
  • Traders point to a thaw in U.S.–China trade relations and an expected Fed rate cut this week, alongside power-hungry AI data centers and the energy transition, as demand tailwinds.
  • The International Copper Study Group projects a 150,000-ton refined market deficit next year, while Panmure Liberum forecasts a small surplus of about 80,000 tons.
  • Analysts warn gains could cool once catalysts are priced, citing stretched positioning, even as a weaker dollar and falling rates have helped lift prices about 27% this year.