Copper Prices Soar on Chile Mine Dispute

Copper prices rose on supply concerns after workers at a major Chilean mine voted to strike. The dispute at Antofagasta Plc's Centinela site may lead to a walkout, affecting production and potentially driving up prices further.

The metal is headed for an 8% quarterly gain, with physical markets showing signs of tightness due to low mined material and vast amounts of refined stockpiled in US warehouses. Deutsche Bank AG predicts copper prices will surge by more than 50% within the next six months as buyers compete for limited holdings.

Processing charges have plummeted into negative territory, squeezing smelter margins and indicating a shortage of mined material. The Yangshan import premium in China is close to its highest level since 2022, signaling strong demand.