Copper prices surged to a three-week high after workers at Chile's Escondida mine, the world’s largest, threatened a strike, while a Federal Reserve official signaled only one more rate hike this year. The union representing over 1,000 direct employees at Escondida, operated by BHP Group, resumed wage talks in a last-ditch effort to avoid the strike set for Wednesday. Copper rose as much as 0.8% to $14,695 a ton in London, its highest since Sept. 23, before easing slightly after a union leader said a deal was still possible.
Chile has faced supply disruptions this year due to labor actions and weather, with August marking the worst copper output in over 15 years. Fed Bank of New York President John Williams stated one more hike is appropriate, but none needed in 2027, easing concerns about aggressive tightening. Higher rates can dampen metal demand by slowing economic growth.
Copper was up 0.5% at $14,649 a ton in Shanghai, with zinc and nickel rising and aluminum falling slightly.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing