Copper firms as supply risks linger

Copper prices rose on Wednesday, aided by supply concerns in top producer Chile, while markets watched developments at key copper mines. Benchmark three-month copper on the London Metal Exchange gained 0.4% at $14,631 a metric ton by 0700 GMT after hitting a three-week peak earlier in the session. The most-traded copper contract on the Shanghai Futures Exchange was up 0.2% to 111,080 yuan ($16,598.68) a ton after touching its highest level since September 10 earlier. "Supply risks in Chile have remained a key focus for the red metal, with strike votes, worker fatalities, operational disruptions, and renewed mine restart headlines helping maintain a supply-risk premium. With these risks still evolving, any escalation in Chile would lend additional support to prices near-term," analysts at TD Securities said. "Markets continue to grapple with tariff uncertainty and ongoing inventory reshuffling." In a last-ditch effort to avoid a strike, the supervisors' union at BHP's Escondida copper mine in Chile and company representatives are holding talks. Meanwhile, Chile's Centinela copper mine and two striking unions returned to the negotiating table on Tuesday, aiming to resolve a week-long work stoppage that workers say is affecting operations. Over the weekend, Chilean state miner Codelco partially suspended operations at its El Teniente mine after a fatal landslide. Elsewhere, copper inventories outside the United States have tightened as metal was shipped into the country ahead of potential tariffs. LME aluminium was down 0.3% at $3,028 after hitting an eight-month low on Monday, while SHFE aluminium fell 0.8%. Citi cut its near-term aluminium price forecast to $3,000 per metric ton and said demand uncertainty continues to weigh on sentiment, with markets increasingly looking past current physical tightness and focusing on a looser supply-demand balance beyond 2026. Among other LME metals, zinc steadied at $3,728.50, lead fell 0.1% at $1,898.50, nickel gained 0.3% to $15,635 and tin fell 2.2% to $50,655. Among SHFE metals, zinc slipped 0.9%, lead gained 0.3%, nickel lost 0.1%, tin fell 5% and hit its lowest level since late June.