Copper production reached 28 million metric tons in 2025, with demand hitting 34 million tons, creating a significant deficit. Scrap accounted for nearly 30% of total consumption, underscoring recycling's vital role. Supply disruptions exceeded 5%, affecting major mines like Grasberg and El Teniente.

China dominates the supply chain, producing 44% of refined copper and consuming over 50% of global demand. This concentration creates a critical trade flow from Latin American mines to Chinese smelters. Mine supply growth has slowed, with top producers like Codelco and Freeport-McMoRan controlling a fragmented market.

Prices are set through London Metal Exchange futures and regional premiums, reflecting concentrate availability and smelter capacity. With demand from construction and power infrastructure steady, investors watch for supply-side shocks. The market's balance hinges on Chinese industrial activity and scrap availability.