Copper rises for third straight session amid supply disruptions, while aluminum and zinc decline

Copper prices rose for a third consecutive session on Tuesday, supported by persistent supply shortage concerns that kept the metal close to its all-time high.

Benchmark three-month copper on the London Metal Exchange (LME) gained 0.1% to $14,636.50 a metric ton by 09:15 GMT, approaching the record high of $14,875 a ton reached last month.

Supply concerns remained at the forefront of market attention after Chile's Codelco partially suspended operations at its El Teniente mine following a landslide. Meanwhile, talks between Antofagasta and two labor unions at the Centinela copper mine were scheduled to resume as a strike continued.

Sucden Financial said in a research note that copper continues to benefit from tight physical market supplies and declining exchange inventories, helping it withstand dollar strength better than other metals.

A stronger dollar makes metals priced in the US currency more expensive for holders of other currencies. Although the dollar temporarily weakened on Tuesday, it remained close to an 18-month high.

Panmure Liberum said reported copper mine disruptions in 2025 and 2026, including those at Indonesia's Grasberg mine and the Kamoa-Kakula mine in the Democratic Republic of Congo, amounted to between 350,000 and 400,000 tons of contained copper annually, representing only around 30% to 50% of the disruption allowances assumed in published reports.

The firm added that speculative and financial factors may currently be the main drivers of prices.

Disruption allowances refer to the proportion of mine production that analysts assume will be lost during a given year due to unplanned events.

Declining copper inventories reinforce supply tightness

Copper inventories on the London Metal Exchange fell by 1,625 tons to 232,275 tons, leaving stocks outside the United States at limited levels.

The LME cash copper contract also traded at a premium of $181.50 a ton over the three-month contract, signaling tight supplies available for near-term delivery.

Aluminum declines as supply flows from the Gulf and Indonesia improve

Meanwhile, aluminum prices fell 0.6% to $3,035.50 a ton, approaching the eight-month low recorded on Monday.

Panmure Liberum noted that the relative easing of restrictions on transit through the Strait of Hormuz had reconnected aluminum smelters in the Gulf region with global markets, putting downward pressure on prices.

New supplies from Indonesia are also increasing, with the country's exports exceeding 150,000 tons in August.

Among other metals, zinc prices declined 0.4% to $3,741.50 a ton, while lead rose 0.6% to $1,894.50 a ton.

Nickel held steady at $15,620 a ton, while tin fell 0.2% to $53,000 a ton.