Supply concerns supporting price increases Copper prices regain upward momentum

Global supply concerns have supported investors' demand for copper, the crucial metal for green transition, trading near the record high set earlier this week. Copper prices have pulled back slightly after hitting historic highs on Monday, but have rebounded along with other industrial metals. The recent rise in prices is mainly due to speculation in the market that a shortage in supply is imminent, as traders are shipping large amounts of copper to the US to avoid potential import tariffs. Throughout the year, a series of unplanned mine shutdowns from Indonesia to Chile and the Democratic Republic of Congo have dominated the supply issues in the copper market. Chinese smelters and miners are currently in supply negotiations for 2026, but the negotiations are proving difficult as miners have the upper hand. Investors are also awaiting a series of US data to be released this week, including private sector employment, import prices, and industrial production reports to be published later in the week. As of the time of writing, copper prices have risen by 1.3% to $11,332 per ton, with a cumulative increase of about 28% this year. Aluminum prices have risen by 1%, zinc prices by 0.7%, and iron ore futures on the Singapore Exchange have risen by 0.2%.