Copper Prices Soar: Supply Crunch & Fed Rate Hold Boost Mining Stocks

Copper prices advanced significantly on Thursday, propelled by a tightening physical market and the US Federal Reserve’s decision to maintain interest rates.

This upward movement occurred despite Beijing’s continued hesitation to introduce new stimulus measures for its economy.

Key Market Moves

• Comex September copper surged 2.9% to $6.4930 a pound.
• The red metal has gained over 14% in 2026.
• LME copper rose 1.3% to $13,753 a tonne.
• LME inventories decreased by over 10,000 tonnes this week.
• Comex copper is up approximately 4% for July.

Signs of market tightness are evident, with nearby LME contracts trading at a premium, signaling near-term scarcity.

Supply challenges are intensifying, particularly from Codelco, the world’s largest copper miner.

Intensifying Supply Pressures

• Codelco has abandoned its goal of returning to pre-pandemic production levels.
• The state giant anticipates another difficult year for output.
• Disruptions from storms in Chile have further impacted production.
• The International Energy Agency has warned of potential sulphuric acid shortages.

The US Federal Reserve’s decision to hold rates was not unanimous among its officials, while Chinese officials maintained a supportive economic tone without announcing new specific measures.

Amid these developments, copper mining stocks experienced a rally, bolstered by strong earnings reports and increased exposure to the copper market.

Mining Stock Performance

• Teck Resources recorded gains.
• Anglo American also saw an increase.
• Glencore’s shares moved higher.
• Freeport-McMoRan, Southern Copper, Rio Tinto, and BHP all registered gains.

Looking ahead, most metals on the London Metal Exchange are projected to achieve modest monthly gains in July, indicating continued market strength.