Copper prices hit a record high on Wednesday as mounting mine supply shortages spurred the metal on after weeks of trading at elevated levels.

Three-month copper on the London Metal Exchange HG1! was up 0.5% at $11,090 in official open outcry trading, having earlier climbed 1% to a record $11,147.50, beating the previous high of $11,104.50 set in May 2024.

Miner Glencore GLEN on Wednesday lowered its 2025 annual copper production guidance to between 850,000 and 875,000 metric tons, versus 850,000 to 890,000 tons previously, exacerbating concerns over mine supply.

“I do think that’s the final straw, really,” said Nitesh Shah, commodity strategist at WisdomTree, adding that he would not be surprised to see the accumulation of lower production figures pushing copper into a deficit in 2025.

FED DECISION AND TRADE TALKS IN FOCUS

Anglo American AAL on Tuesday also reported lower copper production in the first nine months of 2025.

“The market is a lot tighter than it was at the beginning of this year,” Shah added.

While copper has been supported by supply-side issues, the demand outlook has brightened in Europe on higher car sales, said analysts from ANZ.

Investors are closely monitoring a U.S. Federal Reserve rate decision due later on Wednesday, with a 25-basis-point cut largely priced in, while attention is also on a meeting between U.S. President Donald Trump and Chinese counterpart Xi Jinping on Thursday that could secure a long-awaited trade deal.

The LME complex was broadly higher, with aluminium ALI1! up 0.1% at $2,891.50 a ton, after touching $2,917, its highest since May 2022. Zinc was up 0.8% to $3,081 after hitting its highest since December.

The premium of the cash LME zinc contract over the three-month forward (CMZN0-3) was last at $140, indicating a pressing need for short-term metal, with LME zinc stocks of just 35,200 tons near their lowest since March 2023.

Nickel rose 0.2% to $15,320, while lead LEAD1! was up 0.3% at $2,032 and tin FTIN1! slipped 0.3% to $36,250.
Source: Reuters