Copper Rallies on AI Demand and Chile Strike Risks

Copper prices climbed to nearly $6.60 per pound on October 6, 2026, marking a 0.27% daily gain and the third consecutive session of increases. Despite this rise, the metal is still down 2.03% over the past month. The rally is being driven by a surge in AI and technology-linked assets, which is boosting demand expectations for copper in data centers and power infrastructure. This optimism is counteracting signs of weakening industrial activity in China, the world’s largest copper consumer.

Supply concerns are mounting in Chile, where workers at Antofagasta’s Centinela mine voted to strike after wage negotiations broke down. This follows a similarly weak output report for August, the lowest since February 2011. At BHP’s Escondida mine, the world’s largest copper operation, 95% of union members voted for strike action. Mandatory mediation is underway, but a prolonged dispute could further tighten supply.

Prices on the London Metal Exchange (LME) are slightly lower, with three-month copper trading between $14,253.50 and $14,416.50 per tonne. The US Commerce Department’s proposed import tariffs on refined copper from 2027 could also influence pricing dynamics. Companies like Freeport-McMoRan (NYSE:FCX) and BHP (NYSE:BHP) are closely watching these developments, as strikes and operational challenges could impact production and profitability.

The next key catalysts include the outcome of Escondida’s mediation, Freeport-McMoRan’s earnings report on October 27, and the reopening of Chinese markets on October 8. These events could either strengthen or weaken copper’s outlook depending on their resolution.