Copper Jumps on Supply Concerns

Copper futures jumped above $6.7 per pound on Monday, moving toward fresh record highs amid further signs of tightening global supply. China’s refined copper output is expected to decline for a second consecutive month in August as persistent shortages of copper concentrate and other smelter feedstocks continue to weigh on operating rates, highlighting increasingly tight raw material availability. At the same time, tighter domestic tax-invoice regulations have reduced the availability of VAT-compliant recycled copper, limiting another key source of smelter feedstock and putting further pressure on refined output. In top producer Chile, state-owned miner Codelco reportedly expects copper production to decline this year as it faces setbacks at its mines and development projects. Traders also remained cautious about potential US import tariffs on copper, which have continued to divert metal away from international markets and into US warehouses.

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