Copper prices extended their gains in Asia on Tuesday to hit a new record on mounting concerns over weakening supply even as demand is driven higher.

Chile, the world's largest copper producer, has been a key drag on supply with shipments sinking in recent months as winter storms continue to hit mining regions, according to ANZ Research.

Global copper-mine output fell 1.1% in the first half of 2026, according to preliminary data released in August by the International Copper Study Group, an intergovernmental body representing copper-producing and -consuming countries.

That weakening in output comes as demand for copper has been bolstered by the race to build artificial intelligence infrastructure, as AI data centers require massive amounts of electrical wiring. Investments in power grids, electrical infrastructure and electric vehicles are also expected to lift demand for the red metal.

Also, concerns that President Trump could place new import taxes on refined copper have also drawn more copper to the U.S., distorting the balance in global copper markets, ANZ Research analysts said in a note.

Meanwhile, China is pumping 360 billion yuan, equivalent to $53.64 billion, into insurers and banks to prop up their operations, support increased lending and shore up the economy.

The move could "reinforce investment in manufacturing, infrastructure, power grids and industrial activity, all of which are important channels for copper demand," said Naeem Aslam, chief investment officer at Zaye Cpaital Markets.

Still, Aslam cautions that the elevated copper prices may begin to discourage marginal buyers, particularly if the dollar strengthens or industrial demand fails to match the policy optimism.

Benchmark three-month copper futures on the London Metal Exchange rose 0.6% to $14,600.00 a ton after touching $14,617.00 a ton earlier Tuesday.

In China, copper miners' shares were lifted by the metal's rise.

Jiangxi Copper's shares rose 5.3% and 4.7% in Shanghai and Hong Kong, respectively.

Zijin Mining Group, China's largest mining company, gained 2.95% in Hong Kong and 2.65% in Shanghai. Tongling Nonferrous Metals Group gained 3.3%.