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The Markets
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The Markets
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Mining

Copper’s squeeze tightens as supply snags bite

It is starting to feel crowded on the list of miners warning of thinner copper output. Anglo American PLC (LSE:AAL) has joined the queue, trimming its 2026 production plans last week after more disappointing grades at its giant Collahuasi mine in Chile.

Output there will now be flat year on year, cutting about 50,000-60,000 tonnes from group guidance.

A restart at Los Bronces, a few miles south in Chile, should claw some of that back, but not enough to offset a tightening market.

Add in other recent updates from Glencore and Freeport-McMoRan and the theme is hard to miss: copper supply is becoming more stretched.

Deutsche Bank's Liam Fitzpatrick says the deficit is already here, with disruptions across Latin America and Africa keeping the market in shortfall for the coming quarters. That scarcity has underpinned prices even as economic data have wobbled.

Teck Resources (TSX:TCK) and Antofagasta PLC (LSE:ANTO) have been showing investors around their sites this week, both eager to convince the market that they can deliver steady growth.

But even well-run operators are wrestling with ageing mines and rising costs.

The backdrop leaves the copper sector looking tight but not cheap.

Valuations, the Deutsche analyst notes, already price in much of the supply risk. Still, if the industry continues to stumble, miners with reliable output, including Antofagasta and Glencore, could prove the more durable holdings.

The week ahead will test that narrative as results keep rolling in and investors gauge whether the red metal’s squeeze is just getting started.

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