Copper futures held near $6.57 per pound on Friday, retaining recent gains as persistent supply-side challenges continued to underpin prices.

Analysts pointed to a recent export ban imposed by the Democratic Republic of Congo—one of the world's largest copper-producing countries—as well as weaker output from Chile and Peru, the two leading copper producers, and weather-related disruptions linked to the El Niño phenomenon.

Chile's copper production fell 9.4% year-on-year in July, a decline attributed to severe weather conditions and scheduled mine maintenance.

In China, the world's largest refined copper consumer and producer, refined copper output declined 3% to 1.1 million tons in June.

Meanwhile, ongoing tariff uncertainty continues to encourage copper shipments into the United States, pushing Comex inventories to record highs while tightening available supplies in other regions. The divergence has also opened a gap between Comex copper prices and those on the London Metal Exchange, the global benchmark, as metal flows shift toward the U.S. market.

On the demand side, renewed hostilities between the United States and Iran raised concerns that elevated energy prices could weigh on global economic activity and, by extension, on metals demand. Copper demand is closely tied to broader industrial activity, particularly construction and manufacturing, making the metal sensitive to shifts in the economic outlook.

Supply disruptions are drawing particular attention because copper is a core input for electrification, power grids, and the energy transition, and new mine supply typically takes years to bring online, limiting how quickly producers can respond to price signals. Traders are watching upcoming production data from Chile and Peru, Chinese smelter output, and any changes to U.S. tariff policy for signals on whether the current supply tightness persists.

Source: Trading Economics