Copper prices rallied overnight as supply concerns from major Chilean mines continued to support the market. LME copper rose 0.8% to $14,657 per ton, while US prices gained 1.10% to $6.76 per pound, according to market commentary from ADM Investor Services. The price strength was driven by two significant supply disruptions in Chile.
Chilean state-owned miner Codelco announced a partial suspension at its El Teniente mine following a landslide that killed two workers on Sunday. Additionally, a strike at Antofagasta's Centinela copper mine in Chile remained ongoing, with negotiations scheduled to resume on Tuesday. Global copper inventory levels reflected substantial tightness across major markets.
The premium of LME cash copper over three-month contracts held near $181 per ton, marking a sharp reversal from last month's discount of $86 per ton. In Shanghai, the Yangshan copper premium closed the previous week at $135 per ton, representing a four-year high as traders returned from holiday. Shanghai Futures Exchange (SHFE) copper inventories closed the week at 58,744 tons, up 20,000 tons from the previous week, which represented a near three-year low.
At LME-registered warehouses, total stocks dropped to 233,025 tons, marking a six-week low. Other base metals showed mixed performance during the same period. Zinc declined 1.3% to $3,758 per ton, while aluminum rose 0.3% to $3,058.
Tin climbed 3.0% to $53,000, nickel gained 1.1% to $53,595, and lead eased 0.2% to $1,884. Source: ADM Investor Services International Limited Market Commentary, authored by J.P. Steiner.
Source: admis.com