Copper prices achieved a historic milestone this week, with the Comex September contract touching $6.7045 per pound on Wednesday, surpassing Tuesday's intraday record of $6.69 established in mid-May. According to market reports, the metal has surged approximately 17% in 2026 and more than 50% over the past 12 months. The daily chart now points to $6.85 as the next upside target, representing a potential 2% increase from current levels. The rally reflects a combination of tariff-driven arbitrage and fundamental supply constraints that are reshaping global copper markets.
The Democratic Republic of Congo has implemented a comprehensive ban on copper and cobalt concentrate exports, pushing London copper prices to their highest level since January. Benchmark three-month copper on the London Metal Exchange rose by as much as 1.8% to $14,369.50 per metric ton, reaching the highest level since January 29 when the metal hit an all-time peak of $14,527.50. The June 29 order, signed by Mines Minister Louis Kabamba Watum, Foreign Trade Minister Julien Paluku Kahongya and Economy Minister Daniel Mukoko Samba, states that "the export of copper and cobalt concentrates is prohibited" and takes effect immediately. However, the order allows for one-year export waivers under strategic circumstances and introduces a tax regime for economically significant mining by-products.
Beyond tariff arbitrage and export restrictions, fundamental supply constraints are contributing to the copper price rally. LME copper touched $14,050 per tonne on Wednesday, following Tuesday's breach of the $14,000 threshold for the first time in two months, bringing the metal closer to January's peak of $14,500. The supply squeeze stems from sulphuric acid shortages, with the Strait of Hormuz closure in late February cutting around half of seaborne sulphur exports from the Gulf, followed by China's ban on acid exports in April. These shocks removed roughly a quarter of global supply, particularly impacting Chile and the Democratic Republic of Congo, which reportedly hold only 30 to 60 days of inventory. The Strait's closure disrupted roughly half of seaborne sulphur shipments from the Gulf, with China's export ban extending through December eliminating about a quarter of global sulphuric acid supplies.
The mining sector rallied strongly with the sector up 1.1% as copper reset its record in New York and London, while gold extended the biggest gain in six months. REA Group climbed 3.4% to $172 after posting an 11% surge in revenue for the 2026 financial year, contributing to the broader market gains. The Australian sharemarket rose on Thursday with hopes of a US-Iran deal to reopen the Strait of Hormuz sending the stock exchange to a second record high for the week. The S&P/ASX 200 Index closed at 9271.6, climbing 43.8 points or 0.5% for the second consecutive day, despite a mixed session on Wall Street overnight. Eight of the 11 sectors finished higher, with the energy sector rising 0.1% as Brent crude oil approached $77 per barrel.
