Copper rises on supply risks, demand optimism

Copper prices climbed on Monday as supply risks and demand optimism influenced the market. The benchmark three-month copper on the London Metal Exchange increased 0.3% to $14,585.00 per metric ton, following a weekly rise on Friday. On the Shanghai Futures Exchange, the most-traded copper contract rose 0.9% to 110,630 yuan per ton.

Chilean state miner Codelco temporarily halted operations at its El Teniente mine after a landslide resulted in two deaths and one survivor, as reported by SERNAGEOMIN, Chile's mining regulator. Meanwhile, the strike at Antofagasta's Centinela copper mine in Chile persists, with negotiations set to resume on Tuesday under a voluntary mediation process proposed by regional labor authorities. The strike's full impact is anticipated in November, when production might drop by half, according to unions.

Copper prices retreated despite these challenges as a strong dollar and oil prices remain a concern. A labor dispute at the world's largest copper mine, Escondida, is also raising concerns about potential supply disruptions, as noted by Commerzbank. The Yangshan copper premium, an indicator of China's demand for imported copper, surged to $135 a ton, the highest level in four years.

Warehouse stocks of copper monitored by the Shanghai Futures Exchange rose 51.6% from the end of September to 58,744 tonnes, data revealed on Friday. Among other LME metals, aluminum remained steady at $3,047, zinc was unchanged at $3,806.50, lead increased 0.1% to $1,889.00, nickel dropped 0.5% to $15,550, and tin declined 0.1% to $52,745. In SHFE metals, aluminum climbed 0.4%, zinc rose 1%, lead gained 0.9%, nickel fell 1.3%, and tin increased 1.4%.