Global copper prices surged to a fresh all-time high of $14,779 a tonne on the London Metal Exchange, driven by accelerating global electrification, artificial intelligence data center infrastructure, and supply constraints across Chile and other major producing regions.
The metal that traditionally wired homes and vehicles has taken on a vastly expanded role in the global economy. Power grid expansions, electric vehicle charging networks, and the immense power demands of artificial intelligence hardware have locked global copper supply into a state of extreme tightness.
On September 8, copper crossed $14,779 a tonne on the London Metal Exchange, establishing a fresh all-time high. The price milestone represents a 20% gain since the start of the year and sits nearly 48% higher than where the metal stood a year ago.
Chilean Mine Struggles and Acid Shortages Tighten Global Supply
While demand accelerates, the production side of the equation faces multiple compounding bottlenecks. Chile produces nearly a quarter of the world’s copper and sits on the planet’s largest reserves, holding roughly 180 million tonnes underground. This year, however, Chile’s own copper commission expects production to fall by about 2.6% down to 5.3 million tonnes following a weaker-than-expected first half.
Additional friction comes from an unexpected chemical shortage. Roughly 15% of global copper output relies on a solvent extraction and electrowinning process known as SX-EW, which uses sulphuric acid to extract copper from lower-grade ore. China, a major supplier of that acid, has kept more of its supply at home for agricultural fertilizer. Simultaneously, shipping disruptions near the Strait of Hormuz since February have squeezed sulphur supplies originating in the Middle East.
Add in export restrictions from Congo, and global mine production actually fell 1.1% in the first half of 2026, according to early data from the International Copper Study Group. Traders faced with these overlapping pressures moved quickly to secure supplies.
BHP and Freeport-McMoRan Capitalize on Record Prices
The sustained commodity strength has directly bolstered the balance sheets of the world’s largest publicly traded copper producers. BHP Group and Freeport-McMoRan have seen revenue and operating cash flows boosted by climbed realized copper prices.
Freeport, a pure-play primary copper producer based in Phoenix, produced 786 million pounds of copper and sold 710 million pounds in the second quarter.
Melbourne-based BHP Group produced more than 2 million tons of copper in its fiscal 2026, which ended June 30, for the second straight year, making it the world’s largest copper producer.
PM Capital’s Global Opportunities Fund highlighted BHP in its third-quarter investor letter, noting that shares rallied 18% for the June quarter, hitting an all-time high in early June before consolidating.
“The rally was driven by strength in copper prices, while iron ore remained relatively steady at around US$100–105/t despite Middle East tensions, providing a stable earnings base. The re-rating reflects the market crediting BHP’s reduced iron ore dependence and copper optionality, though softer Chinese steel output remains a lingering risk.”
PM Capital Global Opportunities Fund, via Yahoo
Market participants continue to watch whether Chilean mine output will stabilize, whether shipping routes near the Strait of Hormuz will normalize, and how further U.S. and Chinese trade policies will develop against unrelenting demand from electrification and artificial intelligence infrastructure.