The Conversation (0)
Aug. 31, 2026 02:00PM PST
|Fact CheckedThis article has been reviewed and updated according to INN's rigorous fact-checking process. Our staff editors verify all articles against information and data from primary sources, reputable publishers and experts.
The copper market is being buoyed by significant tailwinds as supply shortages, tariffs and conflict work to drive prices higher.
SimoneN / Shutterstock
London Metal Exchange (LME) copper stocks experienced major drawdowns in the week ended on August 28.
Data from the exchange indicates that open tonnage at LME warehouses fell over the week to reach 107,050 metric tons (MT) on August 26, down significantly from 166,775 MT on August 19.
Likewise, in China, the Shanghai Futures Exchange saw stocks fall by 19.1 percent to 72,428 MT.
The US has seen the opposite, with inflows pushing inventories to a record 758,889 short tons. US-based traders have been accelerating imports ahead of a January 1, 2027, deadline that will impose a 15 percent tariff on refined copper.
In mid-2025, the US imposed a 50 percent tariff on semi-finished copper, including pipes, sheets and rods, but not a blanket tariff on refined copper or copper ore. The Trump administration's original executive order included phased tariffs on refined copper, beginning at 15 percent in 2027 and rising to 30 percent in 2028.
The order also included instructions that the secretary of commerce provide the White House with an update on June 30, 2026. Although the deadline has come and gone, it’s left uncertainty in the market as overseas inventories tighten.
The movements come against a rising price environment that has pushed the three month contract for red metal to record territory since the start of August, peaking at US$14,370 on the LME on August 28.
That's just shy of the US$14,527.50 record set during intraday trading on January 29.
Likewise, in the US, copper prices have been elevated, closing on August 28 at US$6.66 per pound, near its intraday record of US$6.90 set on August 6.
Copper supply disruptions fuel price gains
It’s not just tariff fears that are driving copper prices; the market is also facing significant supply disruptions.
One is at Codelco’s El Teniente operation, where the company halted development of the Andes Norte expansion on August 4 due to seismic risks. The halt came after a six month study of the site following a mine collapse in July 2025 that killed six workers. While production has resumed at the existing operation, Fastmarkets reported that output in the first five months of 2026 was 27 percent lower than in the same period in 2025.
Although the expansion was reportedly 81 percent complete, the completion date is uncertain. Union officials have suggested a two year delay, while other reports indicate production could start in 2029.
The news comes as two of the world's largest copper mines, Freeport-McMoRan's (NYSE:FCX) Grasberg in Indonesia and Ivanhoe Mines' (TSX:IVN,OTCQX:IVPAF) Kamoa-Kakula in the Democratic Republic of the Congo, continue to recover from major incidents that halted production activities in 2025.
Neither mine is expected to be back to full output until sometime in 2027.
Additionally, the Gresik smelter, which is tied to Freeport’s Grasberg operation, was shut down on August 8 after a furnace failure at the site caused a leak of molten material. Repairs at the site are expected to take several weeks.
Iran war also impacting copper prices
The ongoing Strait of Hormuz closure is also impacting copper as the US-Iran war enters its seventh month.
Constrained supplies of sulfuric acid have impacted copper production, driving up operational costs for miners, and oil prices are also affecting downstream prices. Analysts using data supplied by Wood Mackenzie have reported that copper costs rise 3.5 percent for every 10 percent increase in oil prices.
Prices for the fuel have seen wide fluctuations since the conflict began, with the resumption of hostilities on August 30 pushing the price of Brent crude up 3.5 percent to above US$91 per barrel.
While it’s uncertain how much higher oil prices will go, further increases have the potential to boost costs for copper producers and drive prices on both the Comex and LME to new all-time highs.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
From Your Site Articles
- Copper Price Trends: Q2 2026 Review and Forecast ›
- Copper Price 2025 Year-End Review ›
- What Was the Highest Price for Copper? ›
- Is Now a Good Time to Invest in Copper? Experts Tout Bullish Fundamentals ›
Related Articles Around the Web
https://x.com/INN_Resource
https://www.linkedin.com/in/deanbelder
dbelder@investingnews.com
Dean has been writing in one form or another since penning stage plays in his youth. He is a graduate of both Emily Carr University and Simon Fraser University, with a BFA in photography and a BA in communications.
As a writer, Dean has traveled throughout BC and the Pacific Northwest covering cultural events, interviewing small business owners and working alongside fellow writers and photographers from publications like Rolling Stone Magazine, Spin and the Georgia Straight.
Dean has a keen interest in investing, and enjoys learning about the mining industry and better understanding the technical aspects of trading. In his spare time, Dean is an avid home chef, ponders the space-time continuum and makes his own cider. On weekends he can be found cycling the Seawall, exploring farmers markets or sampling the city’s local craft breweries.
As a writer, Dean has traveled throughout BC and the Pacific Northwest covering cultural events, interviewing small business owners and working alongside fellow writers and photographers from publications like Rolling Stone Magazine, Spin and the Georgia Straight.
Dean has a keen interest in investing, and enjoys learning about the mining industry and better understanding the technical aspects of trading. In his spare time, Dean is an avid home chef, ponders the space-time continuum and makes his own cider. On weekends he can be found cycling the Seawall, exploring farmers markets or sampling the city’s local craft breweries.
INN Article Notification
Latest News
Outlook Reports world
Featured Copper Investing Stocks
Browse Companies
MARKETS
COMMODITIES
CURRENCIES
Dean has been writing in one form or another since penning stage plays in his youth. He is a graduate of both Emily Carr University and Simon Fraser University, with a BFA in photography and a BA in communications.
As a writer, Dean has traveled throughout BC and the Pacific Northwest covering cultural events, interviewing small business owners and working alongside fellow writers and photographers from publications like Rolling Stone Magazine, Spin and the Georgia Straight.
Dean has a keen interest in investing, and enjoys learning about the mining industry and better understanding the technical aspects of trading. In his spare time, Dean is an avid home chef, ponders the space-time continuum and makes his own cider. On weekends he can be found cycling the Seawall, exploring farmers markets or sampling the city’s local craft breweries.
Learn about our editorial policies.