UPDATE: Copper prices have skyrocketed above $13,000 per ton, driven by a strike at Chile’s Mantoverde mine and fears of renewed U.S. tariffs on refined copper. This dramatic surge, exceeding 4%, marks a significant escalation in market tensions as supply concerns loom large.
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 officials. Despite the disruption, the mine’s operator aims to maintain 30% of normal production using non-striking workers. However, the ongoing labor dispute highlights the growing discontent among workers amid soaring copper prices, raising the specter of further strikes in the sector.
Compounding these issues, uncertainty over potential U.S. tariffs on refined copper is intensifying market fears. Previously exempt from tariffs, the U.S. government is expected to announce its decision by the end of June, adding to the volatility. Analysts from Commerzbank, including commodity expert Barbara Lambrecht, note that past tariff-related premiums have already sparked concerns about copper scarcity outside the U.S. market.
As COMEX inventories continue to climb, apprehensions are growing that copper may become increasingly scarce globally. The market’s focus is now sharply on how these factors will influence pricing in the coming weeks.
Investors and industry insiders are watching closely as the implications of the strike and tariff fears unfold. What is clear is that the global copper market is at a critical juncture, with significant economic impacts expected as the situation develops.
Stay tuned for updates as this situation progresses, as the copper market remains in flux with potential ramifications for industries reliant on this essential metal.
