Copper firms as supply risks linger
XLB•Copper rose 0.4% to $14,631 a metric ton on the London Metal Exchange, supported by supply concerns in Chile. Markets watched labor talks at major mines, while Citi cut its near-term aluminium forecast to $3,000 per metric ton.
1. Copper prices rise
Benchmark three-month copper gained 0.4% to $14,631 a metric ton by 0700 GMT after reaching a three-week peak earlier in the session. The most-traded Shanghai copper contract rose 0.2% to 111,080 yuan a ton after touching its highest level since September 10.
2. Chile supply concerns
Supply risks in Chile remained a focus, with strike votes, worker fatalities and operational disruptions supporting a supply-risk premium, TD Securities analysts said. Supervisors at BHP's Escondida mine and company representatives held talks to try to avoid a strike. Chile's Centinela mine and two striking unions also returned to negotiations, while state miner Codelco partially suspended operations at El Teniente after a fatal landslide.
3. Aluminium forecast cut
Copper inventories outside the United States tightened as metal was shipped into the country ahead of potential tariffs. LME aluminium fell 0.3% to $3,028, while Citi lowered its near-term aluminium price forecast to $3,000 per metric ton, citing demand uncertainty and expectations of a looser supply-demand balance beyond 2026.
