Copper edges to 3-week high as supply concerns mount
XLB•Copper rose to a three-week high of $14,695 a metric ton as supply concerns in Chile mounted, with the metal trading up 0.3% at $14,619. Investors awaited U.S. inflation data, while labor talks and mine disruptions added to supply risks.
1. Copper reaches three-week high
Benchmark three-month copper rose 0.3% to $14,619 a metric ton on the London Metal Exchange after reaching $14,695, its highest since September 23. The metal was near its previous month’s all-time peak of $14,875.
2. Mine disruptions and negotiations
At Chile’s Centinela mine, workers and management returned to negotiations after a week-long work stoppage that workers say is affecting operations. Codelco partially suspended operations at El Teniente after a fatal landslide, while talks continued between supervisors at BHP’s Escondida mine and company representatives in an effort to avoid a strike. StoneX analyst Natalie Scott-Gray said supply risks were skewed to the upside, citing El Niño’s potential impact on mine production and investor bets on copper.
3. Markets await inflation data
Investors awaited the U.S. consumer price index for September, which could provide clues about future monetary policy. Money markets showed about a 20% chance of a Federal Reserve rate hike this month; higher rates tend to weigh on industrial metals. Aluminium fell 0.5% to $3,022.50 after Citi lowered its near-term forecast to $3,000, citing a loosening market balance.
