Copper slips on stronger dollar, Chile supply worries cap downside
XLB•Copper edged down as a stronger dollar and reduced risk-taking ahead of a long Chinese holiday weekend weighed on prices, while worries over Chilean mine disruptions limited losses. Three-month copper was at $14,616.50 a metric ton, and the LME cash premium over the three-month contract widened to $107.50.
1. Copper prices ease
Three-month copper on the London Metal Exchange was slightly weaker at $14,616.50 a metric ton by 1610 GMT, after touching $14,526 earlier. It has risen 9% this quarter and reached a record $14,875 two weeks ago.
2. Supply concerns support prices
The dollar held near a two-month high, while markets in China were closed for the Mid-Autumn Festival. The LME cash copper premium over the three-month benchmark widened to $107.50 a ton, its highest since September 1, as operations at BHP’s Escondida mine in Chile were suspended after a worker was killed; unions at Antofagasta Minerals’ Centinela mine called for a strike vote.
