Copper steadies as mine strike threat offsets dollar, oil strength
CPER•Copper rose 0.2% to $14,447 per metric ton as a potential strike at Chile’s Centinela mine offset pressure from a strong dollar and high oil prices.
1. Copper prices steady
Benchmark three-month copper was up 0.2% at $14,447 per metric ton in official LME trading, after falling 1.4% on Monday to its lowest since September 17. A stronger dollar and oil prices above $100 a barrel raised concerns about demand.
2. Strike risks and inventories
Workers at two unions at Antofagasta’s Centinela mine rejected a contract offer on Monday, opening the way for a strike. LME copper stocks fell 875 tons to 251,350 tons, with around half available to the market, while COMEX inventories rose for a sixth straight day to more than 700,000 tons.
3. Market factors
Analyst Tom Price said copper retained some upside risk because global inventories had been transferred to the United States, with underperforming Chilean production a secondary factor. Traders were awaiting China’s manufacturing data; restocking ahead of the National Day holiday had largely been completed, analysts at Galaxy Futures said.
