Copper prices "restart rising wave" Goldman Sachs sings multiple times, and the signal of mining companies reducing production is superimposed.

Goldman Sachs Group, Inc. traders recently stated that they are bullish on copper prices in the short term. Antofagasta Plc, a Chilean mining company, has set conservative production targets, exacerbating supply concerns and causing copper prices to rise to their highest level in two weeks. Copper is widely used in renewable energy, electronics, and construction industries, and has risen by over 20% so far this year, supported by global mining shutdowns and production disruptions. On Thursday, copper prices on the London Metal Exchange (LME) rose by 1.8%. Antofagasta announced that they are expected to reach the lower end of their production target for this year, and that their 2026 production target is lower than analysts' expectations, leading to an acceleration in copper price increases. Analysts at Bank of Montreal Capital Markets stated in a report, "Overall, their operational updates are a mixed bag compared to our expectations. The first-time copper production guidance for 2026 may be slightly disappointing." Freeport-McMoRan (FCX.US) also released their quarterly earnings report on Thursday, reiterating that their production for the remainder of this year and 2026 may decrease significantly following a fatal accident at their Grasberg copper mine in Indonesia on September 8th. Goldman Sachs Group, Inc. analysts noted that during the annual LME Week held in London recently, the majority of industry insiders they spoke to expect copper prices to continue to test historic highs in the coming months. If copper prices break $10,900 per ton, some investors plan to increase their positions. U.S. President Donald Trump had proposed imposing import tariffs on copper, but ultimately only applied tariffs to value-added products, rather than bulk commodity-grade copper traded on exchanges, creating significant arbitrage opportunities. Currently, the price of copper futures on the New York Mercantile Exchange (Comex) remains higher than the global benchmark London copper price, with copper continuing to flow into the United States. Goldman Sachs Group, Inc. analysts wrote in their report, "In the short term, we believe the positive Comex-LME arbitrage space will have a significant tightening effect on physical copper markets outside the U.S., and bring short-term upside risks to our London copper price forecast range of $10,000 to $11,000 per ton." On Thursday, copper prices on the London Metal Exchange closed at $10,854.50 per ton. Most other metal prices rose, with zinc prices falling slightly. Due to decreasing zinc stocks on the LME, zinc buyers are facing a historic shortage. However, Goldman Sachs Group, Inc. analysts predict that Chinese zinc exports will help replenish the stock. They noted, "The global zinc market is currently in balance, but regional differences are emerging - China is in surplus while the rest of the world is facing shortages. In the short term, our clients agree with our view that the Chinese export arbitrage window will open to achieve global market rebalancing."