Copper prices inched higher on Wednesday, supported by a strike at a major Chilean mine that heightened supply concerns. Benchmark futures on the London Metal Exchange settled 0.4% higher at $14,475.50 per metric ton. The strike at Antofagasta Plc’s Centinela mine began this week, with unions warning that production could be impacted within two weeks. Meanwhile, BHP Group’s Escondida mine, the world’s largest copper producer, remains in wage negotiations.
The gains in copper were limited by a stronger US dollar and a broader pullback in risk assets. US stocks retreated from record highs, and Treasury yields remained near their highest levels since 2002. Traders are also monitoring potential US tariffs on refined copper, which could affect demand.
Morgan Stanley analyst Amy Gower noted that the market may feel looser if US stockpiling slows down. However, she highlighted resilient demand from China and ongoing supply disruptions as supportive factors. Attention is now on China’s reopening after a weeklong holiday, which could provide fresh insights into demand from the world’s biggest metals consumer.
Other metals on the LME saw mixed movements, with aluminum falling 0.5%, lead rising 1.3%, nickel gaining 0.3%, and tin edging 0.2% higher.