Copper Nears Record Highs as Supply Disruptions in Chile and Indonesia Fuel Global Shortage

Key Facts

In a move reflecting severe global supply constraints, copper prices are nearing historic record highs as production disruptions hit major mining hubs. According to reports, London copper has maintained levels above $14,000 per ton for nine consecutive sessions, with futures closing in on the all-time peak of $14,527.50. This price action underscores growing market anxiety over global supply elasticity as inventories continue to dwindle.

The price surge is fundamentally supported by a 6.7% year-over-year decline in Chilean production and a 5% guidance cut from Antofagasta due to weather issues at the Los Pelambres site. Furthermore, an unscheduled outage at Indonesia's Gresik smelter has halted shipments indefinitely, exacerbating the physical shortage. Per market data, these supply shocks coincide with a 42-session decline in LME stocks, creating a significant squeeze in the physical copper market.

Moving forward, traders are focused on the $14,527.50 resistance level as a potential breakout point for further gains. Market participants should closely monitor the U.S. Consumer Price Index (CPI) release on August 12, 2026, for insights into industrial demand and inflationary pressures. Additionally, any updates regarding the restart of the Gresik smelter in Indonesia will be a critical catalyst for price direction in the coming weeks.