Copper Records Fresh Comex High Amid London Shortage and Eased Inflation Fears
Copper prices reached a fresh record on the Comex exchange after a tame US inflation reading eased concerns about higher interest rates. The metal's premium in London has also surged, with immediate delivery trading at its widest margin of the year.
The September contract for copper touched $6.7140 per pound ($14,802 per tonne) before easing back to $6.6335 to trade relatively unchanged on the day. Meanwhile, cash copper on the London Metal Exchange settled at $14,424.50 a tonne, with buyers paying a premium of $207.50 over the three-month contract.
Chile's copper production forecast was lowered for a second consecutive quarter due to weaker output at some major mines. The country's Gresik smelter remains down after a boiler leak in August.
Bougainville's autonomous government has cleared Lloyds Metals & Energy to carry out preparatory work on the Papua New Guinea mine Panguna, which was shut since 1989 due to environmental concerns and revenue sharing disputes. The project holds remaining reserves of 5.3 million tonnes of copper and 19.3 million ounces of gold.
SM Investments will transfer its stake in Atlas Consolidated Mining and Development to Dominion Holdings by next year, potentially folding in Tampakan, the country's largest copper and gold deposit. Sweden's government has cleared Boliden's mining concession at Laver, paving the way for the company to apply for an environmental permit.