Copper futures rose toward $6.8 per pound on Wednesday, setting new record highs as persistent supply constraints and resilient demand continued to support prices. According to metals trader Sprott Asset Management, global mined copper output could decline this year for the first time since 2017, pressured by supply disruptions, deteriorating ore grades, and weak production in Chile. Additional setbacks at major mines in Indonesia and the Democratic Republic of Congo have further curbed expected annual supply by an estimated 600,000 tons.
On the demand side, consumption remains strong across power grid infrastructure, AI data centers, and the defense industry, while the recent surge in technology and AI equities has further improved the demand outlook. At the same time, traders are closely watching prospective US tariffs on copper, with the Commerce Department proposing duties of 15% from January 2027 and 30% from 2028, pending a final decision by the president.
