Copper Holds Near Six-Month High as Congo Export Ban Stirs Supply Worries
Copper prices hover near six-month highs after the DRC banned copper and cobalt concentrate exports, adding to an already tight market.
Copper prices extended gains on Friday, hovering near a six-month peak after the Democratic Republic of Congo (DRC) imposed an immediate ban on exports of copper and cobalt concentrates. The move has intensified concerns over supply in a market already grappling with low inventories and ongoing mine disruptions.
On the London Metal Exchange (LME), benchmark three-month copper rose 0.64% to $14,193.50 per metric ton as of 0330 GMT. The most-traded September contract on the Shanghai Futures Exchange (SHFE) climbed 0.56% to 108,210 yuan ($16,037.76) per ton, after touching 108,470 yuan earlier — its highest level since May 14.
LME copper had surged to $14,369.50 on Thursday, its strongest since January 29, when the metal hit a record $14,527.50, following news of the Congo measure. The ban, effective immediately, allows for one-year waivers under strategic circumstances.
The direct impact on refined copper supply is expected to be limited, as Congo exports most of its copper in cathode form. In the first quarter, the country shipped 696,725 tons of copper cathodes, compared with concentrates containing just 18,863 tons of copper metal.
Still, the announcement has reinforced an already bullish market backdrop. Analysts at ING noted that the news added to a landscape defined by low inventories, tight concentrate availability, and persistent supply disruptions.
LME copper inventories continue to decline, while COMEX stocks rose to 720,439 short tons (653,571 tons) on Thursday, as uncertainty over potential U.S. import tariffs keeps drawing metal into the country. ING said tight physical markets and constrained mine supply should keep supporting prices, though disappointment over tariff measures could prompt consolidation near record highs.
Among other LME metals, aluminium rose 0.55%, zinc gained 0.58%, lead added 0.40%, nickel climbed 1.42%, and tin rose 0.58%. On the SHFE, aluminium gained 0.86%, zinc rose 1.35%, lead added 0.48%, and nickel advanced 0.44%, while tin fell 0.30%.