Copper’s Record Highs Back in Focus as Markets Bet on Long-Term Supply Tightness

India’s state-owned Hindustan Copper said it plans to increase copper production by nearly 30% this fiscal year. The company believes rising demand from AI data centers, electric vehicles, and global power-grid upgrades will continue tightening copper markets worldwide. Executives noted that global copper supply remains constrained, supporting expectations for sustained high prices. Analysts say Asian economies are increasingly accelerating domestic copper development strategies to secure future supply.

SMM Morning Meeting Summary: Overnight, LME copper opened at $13,477/mt, dipped to a low of $13,436/mt in early trading, then the price center gradually shifted upward to reach $13,625/mt, and finally moved sideways at high levels to close at $13,590/mt, up 0.34%, with trading volume at 24,000 lots and open interest at 283,000 lots, an increase of 2,099 lots from the previous trading day, indicating bulls adding positions. Overnight, the most-traded SHFE copper 2606 contract opened at 104,480 yuan/mt, touched a high of 104,840 yuan/mt in early trading, then the price center shifted slightly lower to a low of 104,440 yuan/mt, and finally moved sideways to close at 104,590 yuan/mt, up 0.28%, with trading volume at 30,000 lots and open interest at 154,000 lots, a decrease of 3,110 lots from the previous trading day, indicating bears reducing positions.

On May 18, Dianzhong Nonferrous's ISA furnace started production and began furnace drying, as production resumptions entered a critical period. This annual centralized maintenance covered key areas including in-depth inspection of equipment hazards, replacement of aging parts, commissioning and optimization of production systems, and quality upgrades of infrastructure.