UPDATE: Copper prices have just surged above $13,000 per ton due to a significant strike at the Mantoverde mine in Chile and escalating fears of renewed US tariffs. This development is intensifying concerns over global supply shortages in the copper market.
The strike, initiated by workers at the Mantoverde mine, could extend beyond two months, according to union officials, who cite strong financial reserves as their motivation. Although this mine represents less than 0.5% of global copper supply, the potential for prolonged disruption is raising alarms across the industry.
Copper’s price spike—jumping more than 4%—marks a critical moment in the market, as analysts highlight two key factors driving the increase. First, the ongoing strike is a clear indicator of mounting tensions between mining companies and workers, with the potential for additional strikes looming in other regions.
Secondly, uncertainty surrounding potential new tariffs from the US government is exacerbating the situation. Previously exempt from tariffs, copper is under scrutiny as the government is expected to make a decision by the end of June 2023. The fear of tariffs has previously led to significant premiums on copper prices, particularly in the New York COMEX compared to the London Metal Exchange (LME).
Commerzbank’s commodity analyst Barbara Lambrecht points to rising COMEX inventories, noting that while premiums have recently dropped, the climbing stock levels are fueling fears that copper may become increasingly scarce outside the US market.
As the situation develops, market participants are urged to monitor the implications of the strike and tariff discussions closely. The combination of labor unrest and tariff uncertainty could create a perfect storm for copper prices, impacting industries relying on this critical metal.
This urgent update signals a pivotal moment for copper investors and stakeholders, with global supply chains hanging in the balance. As prices continue to fluctuate and negotiations unfold, the market will be closely watching any further developments from Chile and Washington.
Stay tuned for more updates as this story evolves, and share this news to keep your network informed of these crucial developments in the copper market.
