Copper futures climbed above $6.70 per pound on Monday, edging toward new record highs amid mounting evidence of tightening global supply. In China, refined copper output is set to fall for a second straight month in August, as ongoing shortages of copper concentrate and other smelter feedstocks continue to curb operating rates, underscoring increasingly constrained raw material availability. At the same time, stricter domestic tax-invoice rules have reduced the supply of VAT-compliant recycled copper, squeezing another crucial source of smelter feed and adding further pressure on refined production.
In Chile, the world’s largest copper producer, state-owned miner Codelco reportedly expects its output to decline this year due to setbacks at both operating mines and development projects. Meanwhile, traders remained wary of potential US import tariffs on copper, which have continued to divert metal away from international markets and into US warehouses.
