(Bloomberg) — Copper extended gains above $14,000 a ton, inching toward a record set in late January, as supply risks mount from mine disruptions around the world. Aluminum surged to the highest in more than four years.
The red metal rallied for an eighth session to touch $14,196.50 a ton on the London Metal Exchange, close to its all-time high of $14,527.50.
A squeeze on Middle Eastern sulfur supplies has threatened the production outlook for some mines in Africa, compounding existing disruptions at other major sites around the world. Sulfur is used in processing about a sixth of global copper.
The slew of supply issues, combined with resilient demand, is driving a notable recovery in industrial metals, according to Li Xuezhi, head of research at Chaos Ternary Futures Co.
Copper futures on New York’s Comex jumped to a record $6.716 a pound, widening their premium over LME copper to more than $500 a ton amid expectations the US will impose tariffs on refined metal imports. The potential duties are luring refined copper into the US and draining supplies elsewhere.
The US Commerce Secretary is due to deliver an updated report on the domestic copper market by June 30, part of a broader push to bolster supplies of a metal critical to global electrification.
Meanwhile, in China, worsening raw material shortages at mines have started to affect refined metal output.
Refined copper output stood at 1.05 million tons in April, down 3% from March, after concentrate treatment charges plunged further and invoicing restrictions tightened scrap supply as feedstock, according to Beijing Antaike Information Co. Production may drop further in May due to smelter maintenance, the firm said.
Aluminum climbed to its highest level since March 2022, helped by a surge in withdrawals from LME warehouses — often seen as a last-resort source of supply, pointing to tightening conditions in the physical market.
Copper rose 0.8% to $ 14,140.00 a metric ton on the LME as of 12:22 p.m. in New York. Aluminum gained 2.9% to $3,667.00. All other base metals advanced.
–With assistance from Jack Ryan.
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