Copper holds firm on tight supply as dollar and oil weigh on industrial metals
CPER•Copper rose 0.2% to $14,495.50 a metric ton as Chinese buyers returned after a holiday and supply concerns supported prices, despite a strong dollar and rising oil. The cash contract premium over three-month copper widened to $120 a ton.
1. Copper prices rise
Three-month copper on the London Metal Exchange was up 0.2% at $14,495.50 a metric ton by 0930 GMT, after reaching $14,646.50 earlier. Expectations of Chinese restocking after the country’s week-long holiday, low stocks and mine supply risks supported prices. The Yangshan premium rose 5% from its last pre-holiday assessment to $125 a ton, its highest since November 2022.
2. Mine supply risks
Workers are on strike at Antofagasta’s Centinela mine in Chile, while BHP has requested government mediation to avert a strike at Escondida. Philex Mining said a union had voted to strike at its Padcal mine in the Philippines. The three mines account for nearly 5.5% of global copper mine production, and LME stocks remained tight after 3,325 tons of warehouse orders. The cash contract premium over three-month copper rose to $120 a ton from about $89 on Wednesday; a stronger dollar weighed on other industrial metals.
