Copper prices on the London Metal Exchange (LME) rose on Friday, recovering most of the previous session’s losses as supply disruptions at major mines and strong demand from China, the world’s largest copper consumer, supported the market.
Benchmark three-month copper on the LME gained 1.08 per cent to $14,464 per metric tonne, after declining 1.15 per cent in the previous session. The metal was up 1.44 per cent for the week, reflecting persistent concerns about supply availability amid resilient demand.
The recovery came despite losses in Shanghai, where the most-traded copper contract on the Shanghai Futures Exchange (SHFE) fell 0.61 per cent to 110,060 yuan ($16,431.03) per tonne, tracking the previous overnight weakness in London.
“Copper is near record levels, supported by supply-side issues,” Daniel Hynes, senior commodity strategist at ANZ, said in a note.
Supply concerns intensified after a workers’ union at Chile’s Centinela copper mine, operated by Antofagasta, warned that an ongoing strike would begin to affect production in November, potentially cutting output by half. Antofagasta had earlier played down the expected impact of the industrial action.
The threatened production decline adds to disruptions at other mines, raising the risk of tighter global supplies as demand remains firm.
China’s appetite for imported copper showed further strength, with the Yangshan copper premium rising to $125 per tonne on Thursday, its highest level since November 2022. The premium, which measures the additional cost buyers in China are willing to pay for imported copper, increased when the country returned from a week-long holiday.
Supply concerns have also been amplified by copper stocks being drawn into the United States ahead of potential tariffs on refined copper imports. The movement of metal into the US has reduced availability in other markets, adding another layer of uncertainty to global supply.
The prospect of lower mine output, shifting inventories and sustained Chinese import demand has left copper vulnerable to further supply-side shocks, even as prices fluctuate across major exchanges.
The dollar index, which measures the US currency against a basket of major currencies, edged lower on Friday, providing some support for dollar-priced commodities. A stronger dollar generally makes metals more expensive for buyers using other currencies, potentially restraining demand.
Oil prices also slipped, after both the dollar and energy markets had weighed on industrial metals in the preceding session. Elevated energy costs can fuel inflation and undermine economic activity, while lower oil prices may ease some cost pressures for industrial consumers.
The wider metals complex was mixed across the two exchanges.
On the LME, aluminium rose 1.08 per cent, zinc gained 0.97 per cent, lead advanced 0.75 per cent, nickel added 0.72 per cent and tin climbed 1.56 per cent.
Trading in Shanghai was weaker. SHFE aluminium fell 0.34 per cent, zinc declined 1.09 per cent, lead lost 1.3 per cent, nickel slipped 0.08 per cent and tin dropped 4.03 per cent.
