Mine strike supports copper, offsets pressure from firmer dollar
CPER•Copper prices recovered as a possible walkout at Chile’s Centinela mine raised supply concerns and offset pressure from a stronger dollar. LME copper was little changed at $14,420 a metric ton and has gained 16% this year.
1. Strike risk supports copper
Copper prices recovered on Wednesday as workers at Chile’s Centinela mine were set to strike after talks between two unions and Antofagasta Minerals broke down. LME copper was little changed at $14,420 a metric ton in official trading after earlier falling.
2. Inventories and dollar pressure
RBC analyst Ben Davis said tight copper inventories outside the United States could have a larger-than-normal impact on prices. LME warehouse inventories have fallen 36% since early June, while Shanghai Futures Exchange-linked stocks have dropped 79%. The dollar edged higher, weighing on dollar-denominated metals, while WisdomTree strategist Nitesh Shah said demand remained robust and cited China’s electrification.
