LME copper price reported at $14,253/tonne in week ending August 29

en.Wedoany.com Reported - In the week ending August 29, 2026, the London Metal Exchange (LME) copper price was reported at $14,253 per tonne, continuing to rise from $14,037 per tonne on August 21, with prices remaining near historical highs. Tightening physical supply outside the United States, shifts in trade flows driven by tariff policies, and persistent concerns over mine supply have jointly underpinned copper prices.

High total exchange inventory levels have not dampened market sentiment. Due to the threat of US tariffs, large volumes of refined copper have been concentrated into North America, with COMEX inventories reaching a record 675,185 tonnes by the end of August. This diversion of metal has reduced supply availability in other regions, leading to an increase in LME warrant cancellations and heightening market sensitivity to localized spot tightness.

The concentrate market is another key variable. Treatment charges (TC/RC) remain in deeply negative territory, squeezing smelter margins, while disruptions at major mine operations have constrained raw material supply. Output at major Chilean mines has declined, and Kamoa-Kakula, after experiencing early operational and development issues, has maintained its downwardly revised 2026 production guidance—mine supply can hardly be described as ample.

Chilean state-owned copper company Codelco reported pre-tax profit of $1.97 billion for the first half of the year, more than four times the year-ago period, but its own copper production fell 11% year-on-year to 564,000 tonnes. The output decline was primarily driven by operational constraints at El Teniente, weak production at Chuquicamata, and lower ore grades at Ministro Hales. The company also faces the aftermath of a fatal accident at El Teniente in July, making its 2026 production target of 1.33–1.36 million tonnes increasingly difficult to achieve.

Uncertainty over US tariff policy continues to disrupt global copper trade flows, with traders adjusting positions ahead of potential tariffs on refined copper. Long-term demand expectations from grid investment, electrification, and AI-related power infrastructure continue to provide market support.

The latest Commitments of Traders (COT) report from the Chicago Mercantile Exchange (CME) shows copper long positions have risen to a two-year high, increasing by 10,897 contracts in July alone—the largest monthly gain since September 2024. The main trigger for the return of longs was strong earnings from major US technology companies and their increased investment in AI infrastructure, further reinforcing expectations of rising copper demand.

Tightening mine supply is now transmitting to the smelting segment. China's refined copper production in July 2026 fell 3.7% month-on-month after setting a fresh record high, with mounting pressure on smelters to cut output.

Meanwhile, the spread between CME and LME prices continues to attract surplus copper inventories into CME warehouses, which have repeatedly set records since last year. The inventory shift has tightened supply in other regions, with LME copper inventories declining by a cumulative 39% over the past three months.

India's copper scrap market remained firm in the week ending August 26, 2026. Steady purchasing from wire rod, cable, brass, and alloy manufacturers, coupled with limited availability of premium-grade scrap, firm domestic supply tightness, high import costs, and stronger global copper prices, collectively supported the market, despite some improvement in scrap yard inventories. According to commodity assessment agency BigMint, copper armature scrap delivered in Delhi was assessed at INR 1,310,000 per tonne (i.e., INR 1,310 per kg), versus INR 1,280,000 per tonne a week earlier, with multiple deals concluded near INR 1,310 per kg during the assessment period, indicating stronger buying interest and constrained spot availability.

The Indian government announced the sale of up to a 6% stake in Hindustan Copper through the Offer for Sale (OFS) mechanism, with an initial 3% offered at a floor price of INR 514 per share, and an additional 3% available if demand is strong. The initial non-retail portion was fully subscribed, but the company's share price fell sharply following the announcement.