Copper Extends Gains on Mounting Supply Disruptions

Copper futures rose above $6.70 per pound on Wednesday, moving closer to record highs as labor strikes and adverse weather conditions disrupted mining operations across Chile, the world’s largest copper producer. Workers at BHP Group’s massive Escondida mine are set to begin a strike after union leaders reported that wage negotiations failed to reach an agreement before the midnight deadline. Meanwhile, two unions at Antofagasta Plc’s Centinela mine have also launched strikes. Separately, two workers died on Sunday after an avalanche struck Codelco’s major El Teniente mine, where open-pit operations had already been suspended due to unfavorable weather. On the demand side, rising orders for data centers, semiconductor production, and battery storage systems supporting AI technologies and electric vehicles across Asia continued to bolster the outlook for copper.

Copper futures climbed toward $6.70 per pound, moving closer to record highs as ongoing supply disruptions bolstered prices. In Chile, the world’s leading copper producer, two workers died on Sunday after a snow avalanche struck Codelco’s massive El Teniente mine, where open-pit operations had already been suspended due to adverse weather conditions. Meanwhile, a strike at Antofagasta’s Centinela mine is expected to reduce output from one of the world’s largest copper operations during the second half of October. On the demand front, surging orders linked to data centers, semiconductor development, and battery storage for AI technologies and electric vehicles across Asia continued to strengthen the outlook for copper. The metal also gained support from falling oil prices, which could ease inflationary pressures and reduce the need for aggressive monetary tightening by the US Federal Reserve.

Copper futures in the US rose past $6.61 per pound, not too far from the record high of $6.80 touched a month earlier, amid mounting threats to global supply and persistent speculative demand. The risk of import tariffs on unprocessed copper goods triggered a surge in buying to front-load deliveries. Consequently, prompt spreads on major Western exchanges surged. Earlier threats of US duties prompted traders to redirect shipments to American warehouses, contributing to the recent rally in prices. Meanwhile, a strike at Antofagasta's Centinela mine is set to curb output from one of the world's largest operations in the second half of October. On the demand side, soaring orders for data centers, chip development, and battery storage for AI and electric vehicles in Asia continued to support the bull case for copper. Near-term purchasing was also expected in China as manufacturers returned from holidays with low inventories.