Copper rises on supply risks, demand optimism
XLB•Copper rose 0.3% to $14,585 a metric ton on the London Metal Exchange and 0.9% to 110,630 yuan a ton in Shanghai, supported by supply concerns and optimism about demand.
1. Copper prices edge higher
Benchmark three-month copper on the London Metal Exchange was up 0.3% to $14,585 a metric ton by 0704 GMT on Monday, after posting a weekly gain on Friday. The most-traded Shanghai Futures Exchange copper contract rose 0.9% to 110,630 yuan a ton.
2. Supply disruptions in Chile
Codelco partially suspended operations at its El Teniente mine on Sunday after a landslide killed two workers and left one survivor, according to Chile’s mining regulator. A strike at Antofagasta’s Centinela mine continued, with negotiations due to resume Tuesday; unions said production could fall by half in November. Wage negotiations were also under way at Escondida.
3. Demand and inventory signals
The Yangshan copper premium, an indicator of China’s demand for imported copper, climbed to $135 a ton last week, its highest level in four years. Shanghai Futures Exchange copper stocks rose 51.6% from the end of September to 58,744 tonnes.
