Antofagasta Cuts Guidance Amid Global Copper Squeeze

Copper prices reach record highs

The output cut coincides with historic copper price surges across global metal exchanges.

On August 7, Comex copper futures reached an all-time record of US$6.77 per pound, breaking the previous peak set in May. On the London Metal Exchange (LME), three month copper contracts reached US$14,258 per metric ton that day, approaching the LME all-time record of US$14,527.50 ton set on January 29.

DRC ban drives copper supply squeeze

Adding to the supply anxiety in the market, the Democratic Republic of Congo (DRC) imposed an immediate export ban on copper and cobalt concentrates on August 6. While Kinshasa aims to force domestic processing, the directive rattled a market that is already sensitive to supply chain disruptions.

Smelter processing fees have already turned negative amid fierce competition for concentrate.

LME warehouse stocks plunged from 401,000 metric tons in early May to 214,550 metric tons, with 58 percent held as canceled warrants awaiting physical load out. These supply constraints are colliding with concentrated demand spikes from artificial intelligence data centers, electrification and power grid modernization.

China increased its grid investment by 13 percent year-on-year in the first half of 2026 as part of a US$574 billion infrastructure plan. Concurrently, global supply faces tightening from 50 percent US Section 232 tariffs on semi-finished copper imports and Chinese scrap restrictions.

“The underpinning story of elevated copper prices has been data center and power grid demand to support the rapid AI industry expansion,” William Osnato, director of commodity data research and analysis at Barchart, told CNBC.

As global supply chains scramble for physical metal, Osnato added, “It is definitely a new situation for Dr. Copper.”