Copper Climbs 2% on the Week as LME Stocks Hit Six-Week Low and Chile Strike Deepens
Copper closed the week 2% higher on the London Metal Exchange at $14,540 a tonne, supported by a six-week low in LME-registered stocks, a four-year high in a gauge of Chinese import demand and a widening strike at Antofagasta's Centinela mine in Chile.
Three-month copper rose 1.6% on Friday to settle at $14,540 a tonne on the LME, leaving a weekly gain of 2% as improving Chinese demand signals and a rebound in global equities helped the metal recover from the previous session's risk-off retreat. Chinese inventories remain low following the week-long national holiday, while a gauge of import demand reached a four-year high, a sign that buyers in the world's largest consumer may be moving to restock. LME-registered copper stocks simultaneously fell to a six-week low, tightening nearby availability.
Supply risk is adding to the bid. Unions at Antofagasta's Centinela mine in Chile escalated their stoppage with a hunger protest in its third day, projecting that copper output could fall by about 50% in November if the dispute continues, although the company has maintained its output forecast. Huge flows of metal into the United States ahead of potential tariffs have separately tightened availability in the rest of the world, leaving ex-US consumers bidding against a structurally thinner prompt market.
The rest of the complex was mixed to higher. Aluminium slipped 0.1% to $3,048.50 a tonne and nickel gained 0.4% to $15,622, while precious metals strengthened, with spot gold up 1.7% and silver up 3.1% on the session. StoneX analysts including Natalie Scott-Gray said they remained constructive on copper, supported by supply risks, seasonal Chinese demand and continued tariff uncertainty, while cautioning that sticky inflation and hawkish central banks remain downside risks. Brent traded around $104 a barrel and the 10-year Treasury yield climbed to about 5.24%, both headwinds for industrial metals at the margin.