Base Metals & Bulks
Cu

Copper

LME / COMEX

The metal of electrification: every grid upgrade, EV, and data center is a copper order.

Top Producers

Chile: 23%Chile 23%DRC: 13%DRC 13%Peru: 11%Peru 11%Rest of world: 35%Rest of world 35%Indonesia: 5%Indonesia 5%United States: 5%United States 5%China: 8%China 8%

share of 2024 mine production

Top Consumers

China: 55%China 55%Rest of world: 19%Rest of world 19%South Korea: 2%South Korea 2%India: 3%India 3%Japan: 3%Japan 3%United States: 7%United States 7%European Union: 11%European Union 11%

share of 2024 refined consumption

Main Uses

Electrical and grid: 28%Electrical and grid 28%Construction: 28%Construction 28%Other: 11%Other 11%Transport: 13%Transport 13%Machinery: 20%Machinery 20%

share of 2024 refined copper demand by end use (ICSG)

Top Exporters

Chile: 26%Chile 26%DRC: 12%DRC 12%Japan: 9%Japan 9%Rest of world: 40%Rest of world 40%Kazakhstan: 6%Kazakhstan 6%Russia: 7%Russia 7%

share of refined copper cathode exports by mine-and-smelter producers, 2024 (ICSG / UN Comtrade); excludes China, which exports little refined cathode net of its dominant import demand

Top Importers

China: 52%China 52%Rest of world: 19%Rest of world 19%Taiwan: 3%Taiwan 3%South Korea: 4%South Korea 4%United States: 9%United States 9%European Union: 13%European Union 13%

share of 2024 refined copper imports (ICSG / UN Comtrade)

World mine production

roughly 23 million tonnes

as of 2024

World refined consumption

roughly 27 million tonnes

as of 2024

China share of refined demand

roughly 55 percent

as of 2025

Record LME price

$14,527.50 per tonne intraday

January 29, 2026

Largest mine

Escondida, Chile: roughly 1.2 million tonnes per year

as of 2024

Copper in a battery-electric vehicle

roughly 50 to 80 kg, versus roughly 20 kg in a combustion car

as of 2025

Copper has been rerated from a construction-cycle metal into the bottleneck commodity of electrification. The world consumes roughly 27 million tonnes of refined copper a year, with China taking well over half, and the new demand layers stack on top of the old ones: a battery-electric vehicle contains roughly 50 to 80 kilograms of copper against roughly 20 in a combustion car, grid operators in the US, Europe, and China are in the largest transmission build-out in decades, and hyperscale data centers draw copper by the tonne for busbars, cabling, and cooling. That demand story carried LME copper to a record $11,104.50 a tonne in May 2024, and after the September 2025 Grasberg mine disaster in Indonesia knocked out one of the world's largest sources, the rally went vertical: a new record above $11,200 in late October 2025, through $13,000 in early January 2026, and an intraday peak of $14,527.50 a tonne on January 29, 2026.

Supply is struggling to answer. First Quantum's Cobre Panama mine, roughly 350,000 tonnes a year and about 1 percent of world supply, was ordered shut in November 2023 after Panama's Supreme Court ruled its contract unconstitutional, and it has sat idle since. Chilean grades keep falling; Codelco, still the largest producer, has been mining its lowest output in roughly a quarter century. The growth is in the Democratic Republic of the Congo, where Ivanhoe's Kamoa-Kakula complex ramped past 400,000 tonnes a year and pushed the DRC past Peru into second place among mining nations. Meanwhile China built so much smelting capacity that spot treatment charges, the fee smelters earn for converting concentrate, went negative in 2025: smelters effectively paying miners for feed.

Copper trades on three venues at once: the LME 3-month forward is the global reference, COMEX is the US leg, and SHFE sets the tone in Asian hours. The May 2024 COMEX squeeze and the 2025 tariff arbitrage, when COMEX traded as much as roughly 28 percent over the LME before the July 30, 2025 cathode exemption crashed the premium in a day, showed that the three legs can disconnect violently when policy or positioning overwhelms the physical arbitrage.

How It Trades

VenueLME (global benchmark), COMEX (US), SHFE and INE (China)
Benchmark contractLME Copper 3-month forward
Contract size25 tonnes (LME); 25,000 lb (COMEX)
Price termsUSD per tonne (LME); US cents per pound (COMEX)
SettlementLME: physical delivery of warehouse warrants on the prompt date; most OTC swaps cash-settle against the LME official cash price. COMEX: physical delivery into CME-approved US warehouses.
Typical curveModest contango in surplus years, flipping to sharp backwardation when LME stocks run low; the cash-to-3s spread is the standard tightness gauge.
LiquidityThe deepest base metal market across the three venues combined; the most actively traded metal among funds, and the usual macro vehicle for expressing a China or electrification view.

Where It Trades

42%SHFEroughly 400,000 to 600,000 lots a day (5 tonnes each), the deepest onshore Chinese pool
38%LMEroughly 170,000 lots a day (25 tonnes each), the global 3-month benchmark
20%COMEXroughly 80,000 to 120,000 lots a day (25,000 lb each), swollen by the 2024-2025 US tariff arbitrage

approximate share of global daily exchange volume, 2025

Supply and Demand

Top producers

  1. Chile: roughly 5.3 million tonnes mined (2024), led by Escondida and Codelco's aging giants
  2. Democratic Republic of the Congo: roughly 3 million tonnes, the fastest-growing major producer (Kamoa-Kakula, Tenke Fungurume)
  3. Peru: roughly 2.6 million tonnes (Cerro Verde, Las Bambas, Antamina)
  4. China: roughly 1.8 million tonnes mined, but the dominant refiner with over half of world smelting capacity
  5. United States, Russia, Indonesia, Australia: roughly 0.8 to 1.1 million tonnes each

Mine supply is roughly 23 million tonnes a year. The pipeline of large new mines is thin: Cobre Panama has been shut since November 2023, Chilean ore grades decline every year, and most credible growth to 2030 is in the DRC and a handful of brownfield expansions.

Top consumers

  1. China: well over half of world refined demand
  2. European Union
  3. United States
  4. Japan, India, South Korea

Major uses

  • Electrical wiring and grid infrastructure: roughly 65 percent of demand once building wire, cable, and equipment are combined
  • Construction plumbing and architecture
  • Transport, increasingly EVs and charging infrastructure
  • Electronics and data centers

What Moves the Price

  • Chinese credit impulse and construction activity, still the single biggest swing factor
  • Grid investment, EV production, and data center build-out in the US, Europe, and China
  • Mine disruptions: strikes, accidents (Grasberg 2025), political shutdowns (Cobre Panama 2023)
  • Treatment and refining charges as the live indicator of concentrate scarcity
  • LME, COMEX, and SHFE visible inventories
  • US trade policy and the COMEX-LME arbitrage since 2024
  • The US dollar and global rate expectations

Moments That Made the Market

1877

The London Metal Exchange is formally established; copper is one of its founding contracts.

1996

Sumitomo trader Yasuo Hamanaka's decade of hidden copper positions unravels with roughly $2.6 billion in losses, the biggest metals trading scandal of its era.

2008

The supercycle peaks with copper near $8,940 a tonne in July before the financial crisis cuts the price in half within months.

2011

Copper sets a then-record $10,190 a tonne in February on Chinese stimulus demand.

2023

Panama's Supreme Court ruling shuts First Quantum's Cobre Panama mine in November, removing roughly 1 percent of world supply.

2024

A COMEX short squeeze in May blows the US price more than $1,000 a tonne over the LME; LME copper sets a record $11,104.50.

2025

A Section 232 tariff drives the COMEX premium to roughly 28 percent before the July 30 cathode exemption crashes it in a day; the Grasberg mud rush in September cuts Indonesian supply and copper sets a new record above $11,200 in late October.

2026

The post-Grasberg rally accelerates: copper passes $13,000 a tonne in early January and spikes to an intraday record of $14,527.50 on January 29, 2026, before retreating.

What Changed Since the 2010 Handbook Era

  • Electrification rerated copper: grids, EVs, and data centers now drive the marginal tonne, where 2010-era demand was almost entirely Chinese construction.
  • The DRC went from a frontier story to the world's second-largest mining nation, overtaking Peru.
  • China moved from buyer of refined metal to owner of most of the world's smelting capacity, pushing spot treatment charges negative in 2025.
  • COMEX stopped being a sleepy satellite of the LME: the 2024 squeeze and the 2025 tariff arbitrage made the US contract a market in its own right.
  • Supply growth stalled: ore grades fell, permitting slowed, and a single court ruling in Panama removed more capacity than most new mines add.

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