UPDATE: Copper prices have skyrocketed above $13,000 per ton for the first time, driven by a strike at Chile’s Mantoverde mine and escalating fears of renewed US tariffs on refined copper. This surge, exceeding 4%, reflects urgent market concerns over potential supply shortages.
The strike at the Mantoverde mine, which accounts for less than 0.5% of global copper supply, is expected to last over two months, according to union representatives. The operator aims to sustain 30% of normal production using non-striking workers, but the strike highlights growing tensions between mining companies and labor as high copper prices drive discontent.
Concerns about US tariffs are intensifying, as the government is poised to make a decision by the end of June 2023. Previously exempted, these tariffs could significantly impact copper prices and availability. Analysts, including Commerzbank’s Barbara Lambrecht, warn that uncertainties surrounding US tariff policies are tightening global copper supply.
Market dynamics are shifting rapidly. Although COMEX inventories have been rising, historical data shows that fears of tariffs previously led to significant premiums on the New York COMEX compared to the London Metal Exchange (LME). While these premiums recently declined, the ongoing strike and tariff fears complicate the supply landscape.
Investors and consumers alike should brace for potential disruptions in copper availability. With the supply chain already strained, the impact of these developments could resonate across various industries relying on copper, from construction to electronics.
Next steps: Watch for updates on the strike’s duration and any announcements regarding US tariff decisions. The situation remains fluid, and further developments could lead to additional volatility in copper prices.
Stay tuned for more breaking news as this story unfolds.
