Copper prices dipped slightly after BHP Group’s Escondida mine in Chile, the world’s largest copper producer, successfully avoided a potential strike. The strike would have further strained an already tight supply chain, as the mining industry struggles to meet growing demand from data centers and power grids.
Workers at copper mines have been pushing for higher wages, emboldened by near-record copper prices. Meanwhile, producers are trying to control rising costs. At Antofagasta Plc’s Centinela mine, two unions have been on strike for about a week, adding to Chile’s recent challenges in copper production. August marked the country’s worst month for copper output in over 15 years due to labor actions and weather disruptions.
Copper prices had earlier neared an all-time high, with Europe’s top producer Aurubis AG noting that large shipments to the US are contributing to market tightness. Aurubis reported offering a record premium of $347 a ton for 2027 supplies, a 10% increase over this year’s levels. These surcharges, paid on top of futures prices, are key indicators of supply and demand in the physical market.
Traders have been shipping record volumes of copper to the US ahead of potential tariffs, tightening conditions in other regions and pushing prices to new highs. Copper reached a record near $14,900 last month but has since stabilized around $14,490.50 a ton in New York. Other metals like zinc, nickel, and aluminum also saw declines.