METALS-Copper hits record high as supply shortages take toll

Oct 29 (Reuters) - Copper prices hit a record high on Wednesday as mounting mine supply shortages spurred the metal on after weeks of trading at elevated levels.

Three-month copper on the London Metal Exchange CMCU3 was up 1.4% at $11,186 as of 1700 GMT, having earlier risen as high as $11,200. That comfortably surpassed the previous high of $11,104.50 set in May 2024.

Miner Glencore GLEN.L on Wednesday lowered its 2025 annual copper production guidance to between 850,000 and 875,000 metric tons, versus 850,000 to 890,000 tons previously, exacerbating concerns over mine supply.

"I do think that's the final straw, really," said Nitesh Shah, commodity strategist at WisdomTree, adding that he would not be surprised to see the accumulation of lower production figures pushing copper into a deficit in 2025.

Anglo American AAL.L on Tuesday also reported lower copper production in the first nine months of 2025.

"The market is a lot tighter than it was at the beginning of this year," Shah added.

While copper has been supported by supply-side issues, the demand outlook has brightened in Europe on higher car sales, said analysts from ANZ.

Investors are closely monitoring a U.S. Federal Reserve rate decision due on Wednesday, with a 25-basis-point cut largely priced in, while attention is also on a meeting between U.S. President Donald Trump and Chinese counterpart Xi Jinping on Thursday that could secure a long-awaited trade deal.

Among other metals, aluminium CMAL3 slipped 0.1% to $2,886 a ton, after touching $2,917, its highest since May 2022. Zinc CMZN3 was up 0.7% at $3,080 after hitting its highest since December.

The premium of the cash LME zinc contract over the three-month forward CMZN0-3 was last at $140, indicating a pressing need for short-term metal, with LME zinc stocks MZNSTX-TOTAL of just 35,200 tons near their lowest since March 2023.

Nickel CMNI3 rose 0.6% to $15,380, while lead CMPB3 was flat at $2,025.50 and tin CMSN3 fell 0.3% to $36,220.

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