Copper Prices Drop as Escondida Mine Resumes Operations

Copper prices dropped in India on Wednesday as BHP's Escondida mine in Chile gradually resumed operations after disruptions. The stronger US dollar and rising interest rates also weighed on copper prices.

The global refined copper market recorded a deficit of 51,000 tonnes in July, narrowing from a 74,000-tonne shortfall in June. However, the first seven months showed a surplus of 32,000 tonnes compared to a year earlier.

Chile's copper production declined by 9.4% in July due to severe weather and maintenance at major operations. Codelco output fell 5% year-on-year to 112,800 tonnes, while Escondida production dropped 22.1% to 89,400 tonnes.

In contrast, Peru's copper output increased by 3.7% year-on-year in July to 236,515 tonnes. The Shanghai Futures Exchange copper inventories declined by 15.9% from the previous week to 47,147 tonnes.