Copper Steadies as Chile Strike Threat Offset Dollar Strength
Copper prices steadied on Tuesday as concerns over a potential mining strike in Chile offset the impact of a strong dollar and elevated oil prices. Despite signs of deteriorating economic growth due to the Iran war and oil above $100 a barrel, copper still has some upside risk, according to Panmure Liberum analyst Tom Price.
The London Metal Exchange (LME) three-month copper price rose 0.2% to $14,447 per metric ton in official open outcry activity. This comes after the metal lost 1.4% on Monday, hitting its lowest since September 17 due to weak Chinese industrial profits data.
LME copper stocks dipped by 875 tons to 251,350 tons, although only around half are available to the market. In contrast, COMEX inventories in the US have risen for six straight days to over 700,000 metric tons for the first time as the possibility of an import tariff next year remains.
The threat of a mining strike in Chile is also contributing to the stability in copper prices. Workers at two unions at Antofagasta's Centinela copper mine rejected a collective contract offer on Monday, paving the way for a strike.