Copper prices hit a record high on Wednesday, driven by mounting supply shortages after major miners reported steep production declines.

Three-month copper on the London Metal Exchange climbed 0.62% to $11,107 per metric ton by 0730 GMT, having reached a record high of $11,146 earlier.

The most-traded copper contract on the Shanghai Futures Exchange gained 1.16% to 88,710 yuan ($12,454.02) a ton.

On the supply front, global miner Anglo American posted a 9% drop in copper production in the first nine months of the year, falling to 526,000 tons from 575,000 tons in 2024.

Still, the company expects to produce 690,000 tons to 750,000 tons of copper in 2025.

Meanwhile, copper production at Glencore fell 17% in the first nine months of the year, prompting the company to lower its 2025 guidance.

“If a copper smelter wants to buy copper concentrate, the nearest available supply is from a mine that has not yet been built and will come online in two years. The physical shortage is very real,” said Michael Langford, CIO of mining company Scorpion Minerals.

Investors are closely monitoring the Fed’s upcoming rate decision, with a 25-basis-point cut largely priced in, while attention is also on a potential Trump-Xi meeting on Thursday.

Copper has been supported by renewed supply-side issues in recent months, while the demand outlook has brightened in Europe on higher car sales, said analysts from ANZ.

Copper stocks at LME-registered warehouses (MCUSTX-TOTAL) stood at 134,575 tons, the lowest since late July.

Among other London metals, aluminium was up 0.54% at $2,904.5 a ton, nickel gained 0.12% to $15,315, and zinc increased 0.13% to $3,062, while lead dipped 0.15% to $2,023, and tin lost 0.17% to $36,300

SHFE aluminium increased 0.35% to 21,295 yuan, nickel climbed 0.34% to 121,540 yuan, tin rose 0.65% to 286,720 yuan, and zinc edged up 0.27% to 22,430 yuan, while lead eased 0.4% to 17,355 yuan.
Source: Reuters