Copper futures advanced toward $6.60 per pound on Thursday, rebounding from the prior session’s losses as supply disruptions in top producer Chile underpinned prices. Two unions at Antofagasta’s Centinela project began industrial action on Wednesday, cautioning that the strike could start to curb production within about two weeks, even as the company maintained its output guidance. Adding to supply concerns, Chile recently reported that copper production in August fell to its lowest level since February 2011.
At the same time, the Trump administration has yet to decide whether to impose tariffs on refined copper. Earlier threats of US duties had prompted traders to divert shipments into American warehouses, fueling the recent price rally. On the demand side, activity in top consumer China has remained muted following a weeklong national holiday, potentially paving the way for restocking in the coming weeks.
