Copper prices edged lower after BHP Group’s Escondida mine in Chile, the world’s largest, successfully avoided a strike that could have further strained supply. The mining industry is facing challenges in meeting demand from data centers and power grids, with workers pushing for higher wages amid near-record copper prices.
Two unions at Antofagasta Plc’s Centinela mine in Chile have been on strike for about a week, adding to supply disruptions in the country. Chile’s copper production has been hit by labor actions and weather-related issues, with August marking its worst output month in over 15 years.
Copper prices earlier approached an all-time high, with Europe’s top producer Aurubis AG noting that large shipments to the US are tightening market conditions. Aurubis reported offering a record premium of $347 a ton for 2027 supplies, a 10% increase over this year’s levels. This premium is a key indicator of supply and demand in the physical market.
Copper reached a record near $14,900 last month and has since remained close to that level. Market uncertainty persists due to Fed policy and the US-Iran war. US consumer prices rose in September at the fastest pace in five months, reinforcing expectations for additional Fed rate hikes. Higher rates could slow economic growth and raise costs for metals.
Copper settled at $14,490.50 a ton in New York, down 0.6%. Zinc, nickel, and aluminum also saw declines.