Building on its strong start to 2026, copper prices hit new highs on January 6, surpassing US$6 per pound on New York Comex and US$13,000 per ton on London Metal Exchange amid supply tightness and robust demand. Chile benefits fiscally, but experts caution on volatility.
On January 6, copper broke key technical levels in global markets. New York Comex saw the price top US$6.00 per pound briefly before closing at US$5.93, up 0.18%. London Metal Exchange (LME) reached a record US$13,269 per ton (US$6.019/lb per Cochilco), gaining 2.99%.
This lifts the 2026 year-to-date average to US$5.85 per pound, following the initial highs around US$5.7 reported earlier in the week. The rally weakened the dollar to $896 against the Chilean peso, unseen since May 2024, boosting revenues for state producer Codelco and taxes from mines like Escondida.
Drivers include ongoing supply constraints, such as the Mantoverde strike (which produced 57,700 tons in 2024), a delay at Tongling's Ecuador mine, low LME inventories, and demand from energy transition, electromobility, and potential US tariffs under Trump. However, China's Yangshan premium fell to US$43/ton, signaling softer demand from the top consumer.
Pablo Müller of Universidad Autónoma warns of a 'rebound effect' if the cycle shifts, potentially hitting fiscal balances. Conversely, Instituto Libertad's Pablo Pérez sees improved terms of trade and public finances for Chile. Other base metals like tin and nickel also advanced amid market tensions.