Copper nears record high as supply tightness back in focus

Copper inched up on Friday to move within $25 of the record high after another bullish forecast by Goldman Sachs highlighted mine supply constraints, reports Reuters.

Benchmark three-month copper on the London Metal Exchange was up 0.5 per cent at $11,837 in official open outcry activity. It hit a session-high of $11,928, within striking distance of the all-time peak of $11,952 recorded last week.

The metal, widely used in power, construction and manufacturing, is on course to add 3.4 per cent this week and is up more than 35 per cent in 2025.

"Copper remains our favorite long-run industrial metal because it faces unique mine supply constraints and structurally strong demand growth," Goldman Sachs said in a note on Thursday, reiterating its $15,000 a ton forecast for 2035.

The dollar index edged up 0.3 per cent, capping gains in the LME complex. A stronger greenback makes dollar-denominated metals more expensive for holders of other currencies.

"It's all about the supply story right now for copper," said Thu Lan Nguyen, head of commodity research at Commerzbank. "We are not as bullish as other houses. We are saying that copper most likely will move towards $12,000 sustainably over the next month, but I think the air is getting thinner."

Whereas high copper prices have incentivised more investment in mine production, depressed nickel prices have prompted top nickel miner Indonesia to cut output, she noted.

LME nickel rose for a third day and was up 0.9 per cent at $14,770 a ton after Indonesia's government proposed reducing nickel ore production by around one-third to 250 million tons next year.