Chile Strike Threat Boosts Copper Amid Dollar Strength

Copper prices steadied on Tuesday as concerns over a potential mining strike in Chile offset the negative impact of a strong dollar and elevated oil prices. The London Metal Exchange's benchmark three-month copper price was up 0.2% to $14,447 per metric ton.

Despite signs of deteriorating economic growth due to the Iran war and oil above $100 a barrel, Panmure Liberum analyst Tom Price said copper still has some upside risk. He attributed this to the global market being starved of inventory, which continues to be transferred into the US.

The possibility of an import tariff next year is also contributing to rising COMEX inventories in the US, now over 700,000 metric tons for the first time. Meanwhile, Chile's Antofagasta and Escondida mines are facing potential strikes after workers rejected contract offers.