Copper Rises Amid Supply Disruptions
Copper futures climbed toward $6.60 per pound on Thursday, recovering from the previous session’s losses as supply disruptions in top producer Chile lent support to prices. Two unions at Antofagasta’s Centinela project launched industrial action on Wednesday, warning that the strike could begin affecting production within about two weeks, although the company maintained its output ...
Copper prices surged to a near $6.60 per pound on Thursday, bouncing back from a dip on the prior session. The uptick was driven by supply constraints in the world's leading copper producer, Chile. Two unions representing workers at Antofagasta's Centinela project initiated a strike on Wednesday, warning that it could impact production within roughly two weeks.
However, Antofagasta insisted on maintaining its production targets. Chile recently disclosed that copper production dwindled in August to its lowest point since February 2011.
The United States government has not yet determined whether to impose tariffs on refined copper, leaving traders uncertain. Earlier, the prospect of potential US duties prompted market participants to shift shipments towards American warehouses, aiding the recent price rally. On the demand side, China, the top consumer of copper, showed limited activity following a week-long national holiday. This subdued demand could potentially create a window for stockpiling in the weeks ahead.
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