Chile Storms Disrupt Copper Supply, Threatening Price Surge

Severe storms in Chile have disrupted copper supply, sparking concerns of a price surge. The country accounts for over one-fifth of global copper output, and major producers like Anglo American, Antofagasta, Lundin Mining, and state-run Codelco were affected by the bad weather.

The storms killed 13 people and damaged power lines at several mines, including Lundin's Caserones site. Some operations have been halted or scaled back due to the disruption. The market is already under strain from tariff-driven buying in the US, thinner scrap supply in China, and surging demand for copper from AI infrastructure and power grids.

Ewa Manthey of ING warned that while the storms alone may not be enough to upend the market, they reinforce a broader theme of supply struggling to keep pace with demand. Prolonged weather-related outages in Chile could provide additional support for prices, which have already reached an all-time high of $6.70 per pound on June 2.