Commodities May 13, 2026 06:32 AM

UK Miners Rally as Copper Surges to Record on Supply Disruptions and Firm Chinese Demand

Supply interruptions to refining inputs and steady industrial consumption in China lift copper to new highs, boosting FTSE 100 and FTSE 250 miners

By Jordan Park

Copper futures climbed to an all-time high on the London Metal Exchange, prompting broad gains among UK mining stocks across the FTSE 100 and FTSE 250. Supply-side constraints affecting refining inputs and a persistent appetite from China’s industrial sector, alongside structural demand from data centres, electric vehicles and grid electrification, underpinned the move. Precious metals miners also advanced amid mixed moves in bullion and silver prices.

UK Miners Rally as Copper Surges to Record on Supply Disruptions and Firm Chinese Demand

Key Points

  • Copper futures hit an intraday record of $14,191 per tonne on the London Metal Exchange and were trading around $14,158 by mid-afternoon (MCU3).
  • UK mining equities rallied broadly: Antofagasta +3.67%, Anglo American +3.49%, Rio Tinto +3%, Glencore +1.8%; FTSE 250 movers included Atalaya Mining Copper +3.78% and Hochschild Mining +1.79%.
  • Supply constraints from disrupted sulphuric acid shipments through the Strait of Hormuz, China’s export ban on the chemical, and a phased recovery at Indonesia’s Grasberg mine have tightened refined copper availability while demand from China and structural users supports prices.

UK-listed mining companies logged notable gains on Wednesday as copper futures reached a fresh record on the London Metal Exchange, supported by supply disruptions to refining inputs and continued demand from Chinese industry.

Broad market participation was visible on both the FTSE 100 and FTSE 250. Among large-cap miners, Antofagasta led the pack with a 3.67% rise, Anglo American rose 3.49%, Rio Tinto climbed 3.00% and Glencore increased by 1.8%.

Smaller-cap names on the FTSE 250 also enjoyed strength. Atalaya Mining Copper was the top performer on that index, advancing 3.78% ahead of scheduled earnings due in 13 days, while Hochschild Mining gained 1.79%.

Copper futures, under the ticker MCU3, printed an intraday maximum of $14,191 per tonne on the LME and were trading around $14,158 by mid-afternoon when markets were being assessed. The intraday peak constitutes a new record for the contract.

Market participants pointed to a set of supply-side issues that have tightened available refined copper. Ongoing tensions in the Middle East have disrupted shipments of sulphuric acid through the Strait of Hormuz, a critical feedstock for copper refining. In response to these disruptions, China has implemented a ban on its exports of the chemical, a move that has led major Chilean refiners to reduce output.

Compounding the reduction in refining throughput, the Grasberg mine in Indonesia - the world’s second-largest copper operation - remains in a phased recovery after a fatal incident last September. The mine is not expected to be fully restored until the end of 2027, according to the recovery timeline cited by market reports.

On the demand side, appetite from China’s industrial sector has remained firm, supporting prices. The buyer base for copper is also being broadened by structural tailwinds tied to AI data centres, electric vehicles and grid electrification, all cited as longer-term sources of incremental consumption for the metal.

Precious metals miners took some of the day’s upside as well. Fresnillo and Endeavour Mining both rose by roughly 3.6%. Meanwhile, gold edged down 0.25% to about $4,700 per ounce and silver held near two-month highs above $86 an ounce with only marginal intraday movement.


Market context:

  • Record copper pricing coincided with broad gains across UK mining stocks on both major London indices.
  • Supply disruptions to refining inputs and constrained output at major mines were cited as primary near-term price drivers.
  • Demand from China and structural technology and electrification trends continued to underpin longer-term consumption expectations for copper.

Risks

  • Disruption of sulphuric acid shipments through the Strait of Hormuz is tightening refining feedstock flows and has forced output cuts at Chilean refiners - a supply-side risk to copper availability and related industries.
  • China’s ban on sulphuric acid exports has reduced external supply of a key refining chemical, creating near-term production constraints for refineries and potential volatility for copper markets.
  • The phased recovery at the Grasberg mine following a fatal incident last September means a major producer remains below full capacity, with full restoration not expected until end-2027 - a medium-term supply uncertainty for the copper market.

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