Copper prices drifted higher on Monday as ongoing supply risks and optimism over demand lent support to the market.
Benchmark three-month copper on the London Metal Exchange edged 0.3% higher to $14,585.00 a metric ton by 0704 GMT, after registering a weekly gain on Friday.
The most-traded copper contract on the Shanghai Futures Exchange was up 0.9% to 110,630 yuan a ton.
Chilean state miner Codelco partially suspended operations at its El Teniente mine on Sunday after a landslide left two workers dead while one survived, according to SERNAGEOMIN, the South American country’s mining regulator.
The strike at Antofagasta’s Centinela copper mine in Chile continues, with negotiations due to resume on Tuesday under a voluntary mediation process proposed by regional labor authorities.
The full impact of the workers’ strike is expected to be felt in November, when production could decrease by half, unions said on Thursday.
Copper gives up gains as strong dollar and oil weigh
“The dispute is raising concerns about potentially larger supply disruptions.
These concerns are particularly relevant as government-mediated wage negotiations are also currently under way at Escondida, the world’s largest copper mine,“ said Commerzbank in a note. Last week, the Yangshan copper premium, a key indicator of China’s demand for imported copper, climbed to $135 a ton, its highest level in four years.
Meanwhile, copper stocks in warehouses monitored by the Shanghai Futures Exchange rose 51.6% from the end of September to 58,744 tonnes, exchange data showed on Friday.
Among LME metals, aluminium held steady at $3,047, zinc was flat at $3,806.50, lead rose 0.1% at $1,889.00, nickel fell 0.5% to $15,550 and tin lost 0.1% to $52,745.
Among SHFE metals, aluminium added 0.4%, zinc firmed 1%, lead gained 0.9%, nickel dipped 1.3% and tin rose 1.4%.