UPDATE: Copper prices have skyrocketed to over $13,000 per ton due to a significant strike at Chile’s Mantoverde Mine and escalating fears surrounding potential renewed US tariffs. This surge marks a critical moment for the copper market, with prices jumping more than 4% today, hitting a level not seen before.
As the strike at the Mantoverde Mine continues, union leaders indicate it could last more than two months, driven by strong financial reserves. Although the mine represents less than 0.5% of global copper supply, the ripple effects are being felt worldwide. The operator aims to maintain 30% of normal production using non-striking workers, but concerns about escalating tensions between mining companies and labor are growing, hinting at possible further strikes in the industry.
Adding to the turmoil, the US government is expected to make a crucial decision regarding tariffs on refined copper by the end of June. Previously exempted, the potential reinstatement of tariffs raises alarm bells about supply shortages, particularly as fears of tariffs had previously led to significant price premiums on the New York COMEX compared to the London Metal Exchange (LME).
Barbara Lambrecht, a commodity analyst at Commerzbank, points out that increasing inventories on COMEX and past tariff-driven premiums are reviving concerns about copper scarcity outside the US market. Although premiums had seen a recent decline, stockpiles continue to climb, intensifying fears of a supply squeeze in the global copper market.
This dramatic price increase not only reflects market dynamics but also highlights the human impact on workers and communities dependent on mining jobs. The ongoing strike at Mantoverde underscores the growing tension between labor and management, as workers demand fair compensation amidst soaring prices.
Moving forward, traders and investors should keep a close watch on supply chain developments and government tariff decisions. The situation remains fluid, and any announcements could further influence copper prices in the coming days.
Stay tuned for updates as this story develops, and consider the implications of these changes on the broader commodities market.
