Copper prices rallied to their highest level in 16 months on Wednesday after Teck Resources (TSX: TECK.A, TECK.B) (NYSE: TECK) announced significant cuts to its 2025 production forecast, citing ongoing challenges at its key mining operations in Chile and Canada.
On the London Metal Exchange, copper climbed 0.5% to reach $10,815 per tonne, driven by Teck’s reduced output expectations. The company now projects 2025 production between 170,000 and 190,000 tonnes, down from its earlier target of 210,000 to 230,000 tonnes, and has also revised down its production targets through 2028.
The production setback stems primarily from issues at Teck’s flagship Quebrada Blanca (QB) mine in Chile—a project that has long frustrated investors after running $4 billion over budget and falling years behind schedule. The mine continues to face operational challenges, including tailings storage constraints, equipment damage, and pit instability at its high-altitude Andean site. Similar problems have affected the company’s Highland Valley Copper (HVC) operation in Canada.
Copper has gained about 23% year-to-date, fueled by tightening global supply despite weak demand across major industrial economies. Analysts have slashed global output projections following disruptions at major mines in Chile, the Democratic Republic of Congo, and Indonesia, heightening fears of supply deficits.
Supply concerns deepened further after Freeport-McMoRan (NYSE: FCX) declared force majeure at its Grasberg mine in Indonesia—the world’s second-largest copper producer—after severe flooding halted operations. Tragically, all seven missing workers were confirmed dead following recovery efforts over the weekend.
“We’re seeing unprecedented levels of copper supply disruptions, and many of these issues are not temporary,” analysts at Jefferies noted. “Teck’s latest miss at QB only intensifies market concerns.”
According to Citigroup, copper prices could climb as high as $12,000 per tonne in the first half of 2026, supported by ongoing supply shortages and a weaker US dollar. Analysts expect prices to moderate in late 2026 as mine operations recover.
On the Chicago Mercantile Exchange, three-month copper futures rose 1.15% to $11,343 per tonne ($5.156 per pound), reflecting growing investor confidence in continued price strength.
