Key Takeaways
- Copper prices increased by 0.3% to $14,585.00 a metric ton on the London Metal Exchange.
- Supply disruptions from strikes and landslides are causing concerns about potential production drops.
- China’s demand for imported copper is indicated by a 4-year high in the Yangshan copper premium.
Copper prices have risen, with the benchmark three-month copper on the London Metal Exchange increasing by 0.3% to $14,585.00 a metric ton by 0704 GMT on Monday. This follows a weekly gain on Friday.
Supply risks are a key factor driving the price increase, with ongoing strikes and natural disasters impacting production. In Chile, the El Teniente mine was partially suspended after a landslide left two workers dead, while the Centinela copper mine strike continues, with negotiations set to resume on Tuesday.
The full impact of the strikes is expected to be felt in November, when production could decrease by half, according to union statements. These disruptions are raising concerns about larger supply disruptions, particularly as government-mediated wage negotiations are ongoing at Escondida, the world’s largest copper mine.
China’s demand for imported copper is also a factor, with the Yangshan copper premium climbing to $135 a ton, its highest level in four years. This indicates strong demand from the world’s largest copper consumer.
Stock levels in warehouses monitored by the Shanghai Futures Exchange have increased by 51.6% from the end of September, reaching 58,744 tonnes, according to exchange data.
Among other metals, aluminium prices held steady at $3,047, while zinc prices were flat at $3,806.50. Lead prices rose slightly by 0.1%, nickel fell by 0.5% to $15,550, and tin lost 0.1% to $52,745.
In the Shanghai Futures Exchange, aluminium prices added 0.4%, zinc prices firmed by 1%, lead prices gained 0.9%, nickel prices dipped 1.3%, and tin prices rose by 1.4%.
Commerzbank noted that the dispute is raising concerns about potentially larger supply disruptions, particularly as government-mediated wage negotiations are currently under way at Escondida.
