1 hr ago
Copper Gains as Chinese Demand and Chile Mine Risks Support Prices
Copper prices rose on Friday and were set for a weekly gain.
Traders saw signs that China may buy more copper after a holiday.
Copper inventories there were low, and one measure of import demand reached its highest level in four years.
A possible strike at a large Chilean mine could also affect how much copper is produced.
The company that runs the mine said it still expects to meet its production outlook.
US tariff uncertainty has drawn supplies toward the United States, leaving tighter conditions elsewhere.
Investors are also watching the Iran war and its possible effects on energy prices and the economy.
Higher interest rates could make copper demand weaker, so analysts say risks remain.
Copper rose as much as 1.2% on the London Metal Exchange Friday and was on track for a 1.5% weekly gain.
Low inventories in China after a national holiday and a four-year high in an import-demand gauge pointed to stronger buying.
A possible strike at Antofagasta’s Centinela mine could affect output within two weeks, while the company maintained its production outlook.
US tariff uncertainty has drawn copper supplies to America and tightened conditions elsewhere; investors are also watching energy prices and risk appetite amid the Iran war.
Analysts cited seasonal Chinese demand and supply risks as support, while sticky inflation and hawkish central banks remained downside risks.
- Who
- Copper traders and investors; Antofagasta Plc and unions at its Centinela mine.
- What
- Copper prices rose, supported by signs of Chinese demand and concerns about possible mine supply disruptions.
- Where
- London Metal Exchange trading, with demand and inventory concerns centered on China and potential supply disruption in Chile.
- When
- Friday; the article reports the move at 10:36 a.m. Singapore time.
- Why
- Low Chinese inventories and possible supply disruption supported prices, alongside tariff uncertainty.
Union warning
Company outlook
Potential Centinela mine output disruption
Union warning
Unions said a strike at the mine would begin affecting output within two weeks.
Company outlook
Antofagasta Plc maintained its production outlook.
Key facts
- LME copper price
- $14,474.50 a ton at 10:36 a.m. in Singapore
- Friday price move
- Rose as much as 1.2%
- Weekly outlook
- On track for a gain of about 1.5%
- China demand indicator
- A gauge of import demand reached a four-year high
- Centinela strike risk
- Unions said a strike would start affecting output within two weeks
- Company production outlook
- Antofagasta Plc maintained its production outlook
- Other major contracts
- All advanced; tin led with a 1.5% gain
Quotes
StoneX analysts, including Natalie Scott-Gray
Analysts at StoneX commenting on the copper market.
“We remain constructive for copper, supported by supply risks, seasonal Chinese demand and continued tariff uncertainty”
livemint.com
Sources
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