Chilean copper mines significantly raised prices, combined with a weakening US dollar, copper prices continue to rise.

Copper prices have resumed their upward trend, driven by a sharp increase in annual premiums from the world’s largest copper producer and a weaker dollar boosting metal appeal. Copper futures continued to climb after rising 0.4% on Tuesday, approaching the $10,900 per ton mark. Chile’s state-owned copper company Codelco has proposed to some Chinese buyers a supply premium for 2026 annual contracts that is $350 above the London Metal Exchange price per ton. This move highlights market concerns that many regions may soon face supply shortages. In the foreign exchange market, the dollar weakened as speculation grew that the Federal Reserve will ease policy again next month. Additionally, a supporter of interest rate cuts has emerged as a potential candidate for the next central bank chief, further weakening the dollar. A weaker dollar lowers raw material purchase costs for overseas buyers, supporting metal prices. So far this year, copper prices have risen nearly 25%, hitting an all-time high above $11,000 per ton last month. This rally has been driven mainly by disruptions at key mines, ore shortages, and market bets that the Trump administration will reconsider its refined metals tariff plan next year. Codelco’s significant premium increase sets an industry benchmark Codelco’s offers are typically seen as the industry standard. The proposed $350 per ton premium is a sharp jump from the $89 agreed this year. This aggressive pricing reflects market worries about supply chain distribution, namely that a surge in shipments to the US could squeeze supplies to other regions. Against this backdrop, copper prices continue to be supported by buying interest spurred by supply disruptions and policy expectations. As of 11:51 a.m. Singapore time, London Metal Exchange three-month copper was up 0.6% at $10,877.50 per ton. All other five major metals also rose, with aluminum and zinc both up 0.4%, and tin on track for its highest closing price since April. Risk Warning and Disclaimer The market contains risks; investment requires caution. This article does not constitute personal investment advice, nor does it consider the individual investment objectives, financial situation, or needs of specific users. Users should consider whether any opinions, views, or conclusions contained in this article are suitable for their particular circumstances. Investing based on this article is at your own risk.