Copper prices extended their advance for a sixth consecutive trading session on Tuesday as tightening physical supply conditions in China and seasonal demand ahead of the October holiday period provided fresh support for the industrial metal. The benchmark three-month contract on the London Metal Exchange (LME) gained 0.8% to approximately US$14,760 per tonne, building on Monday's gains. On Comex, the most-traded December futures contract climbed 1.5% to more than US$6.87 per pound, widening its premium over LME to around US$300 per tonne.
Copper prices on both major trading venues are now approaching record highs set earlier this month, according to Mining.com.au reporting. The rally has been sustained by tightening physical market conditions in China, where spot supplies have been constrained by strong direct shipments to fabricators and seasonal restocking activity. According to Shanghai Metals Market (SMM) data, copper cathode inventories in Shanghai fell to 43,900 tonnes, marking their lowest level since 2023.
ING Commodities Strategist Ewa Manthey told Reuters that falling inventories, seasonal restocking demand, and constrained spot availability are helping offset uncertainty surrounding potential US tariffs on refined copper. The earlier part of this rally was largely driven by expectations that the US could impose tariffs on refined copper, which would create incentives to ship metal into the country and tighten supplies elsewhere. While this trade momentum briefly lost steam following reports that US officials were concerned about the potential impact of tariffs on domestic manufacturing costs, copper has since regained ground as stronger Chinese demand shifts focus back to physical market conditions.
Sandeep Daga, Head of Research at Metal Intelligence Centre, noted that the Chinese are actively buying ahead of holidays and smelter shutdowns. Persistent concerns over global mine supply are also keeping copper prices elevated. Apollo Global Management has warned of a potential supply shortfall, noting that major copper discoveries have become increasingly scarce over the past three decades.
Major discoveries, defined as deposits containing at least 500,000 tonnes of copper, have fallen from double digits annually during parts of the 1990s and 2000s to just one or two in recent years, with none recorded in 2025. The supply constraints come as copper demand is expected to increase substantially due to electrification, power grid investment, AI infrastructure, data centres, and advanced manufacturing. In response, explorers across North America are stepping up work on copper projects.
In Nevada, Copper One Resources is ramping up exploration at its district-scale Majuba Hill Project, which historically produced 2.8 million pounds of copper. The company recently expanded its drilling program to test additional targets as it works towards delineating a mineral resource estimate. Copper One CEO David Greenway highlighted that with copper demand continuing to accelerate from electrification, AI infrastructure, data centres, grid modernisation, and advanced manufacturing, Majuba Hill is well positioned to become an increasingly important North American copper project.
Other explorers are also advancing copper development. Gunnison Copper's Johnson Camp Mine in Arizona has recently reached commercial production, with the company also advancing another copper project in the state. In British Columbia, Kodiak Copper is expanding drilling at its MPD Copper-Gold Porphyry Project as it seeks to grow the project's maiden mineral resource.
Meanwhile, Power Metallic Mines is advancing its polymetallic Nisk Project in Québec following a recent mineral resource estimate release.
Source: mining.com.au