Copper Prices Dip as Escondida Mine Avoids Strike

Copper slipped on Tuesday after BHP Group’s Escondida mine in Chile, the world’s largest copper producer, avoided a strike that could have tightened supply. Workers at two unions in Antofagasta Plc’s Centinela mine have been on strike for about a week, raising fears of further disruptions in a year already marked by labor actions and weather‑related cuts. August had been Chile’s worst month for copper output in more than 15 years, adding to supply worries as demand from data centres and power grids stays strong. Near‑record prices had emboldened miners’ workers to demand a larger share of profits while producers tried to curb rising costs. Europe’s top smelter Aurubis said huge shipments to the United States are making the market tight and that its warehouses are almost empty. Aurubis offered a record premium of $347 a tonne for copper deliveries in 2027, a 10 % rise on this year’s level. Traders have been moving record volumes to the U.S. ahead of possible tariffs, a move that helped lift prices to a near‑all‑time high of about $14,900 last month. The metal now hovers close to that peak amid uncertainty over Federal Reserve policy and the impact of the US‑Iran conflict. US consumer prices rose fastest in five months in September, prompting expectations of another Fed rate hike. New York Fed President John Williams said one more hike is likely this year, which could weigh on metals. Copper settled 0.6 % lower at $14,490.50 a tonne in New York, while zinc, nickel and aluminium also fell.

Context

Chile supplies roughly a third of global copper, making any labor unrest there a key factor for worldwide markets. Tight US demand and potential tariffs have pushed more shipments north, leaving European stockpiles low and keeping prices volatile.