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| Copper price |
Chinese Trade Strength and Chilean Mine Disruption Drive Copper Price Upward
Copper price rose steadily this week, supported by stronger-than-expected Chinese import data and significant supply concerns in Chile. On Thursday, COMEX copper futures gained 0.8% to $4.4115/lb, while LME copper settled 0.4% higher at $9,676/tonne.
China’s July trade data showed a 7.2% increase in exports, surpassing projections. This boosted industrial metal demand, particularly for copper, used in autos, electronics, and construction. Despite weak domestic demand, Chinese manufacturers ramped up global shipments to offset slowing local consumption.
Meanwhile, copper imports reached 480,000 tons in June, the highest monthly volume this year. Analysts suggest rerouted Russian and African supply replaced volumes diverted to the US market due to tariff shifts.
Chile’s El Teniente Mine Shutdown Adds to Supply Concerns
In contrast, copper supply faces disruption due to a deadly accident in Chile. Codelco halted operations at El Teniente, the world’s largest underground copper mine, following a tunnel collapse that killed six workers and injured nine.
As a result, Codelco suspended underground mining and processing. Monthly output may fall by 30,000 tons—about 25% of the company's production. The company has reassigned 5,000 workers to safety inspections and awaits regulatory approval to restart limited operations.
According to StoneX Financial, a reopening is unlikely until investigations conclude. The incident adds pressure to an already tight copper market and supports higher copper price levels globally.
Market Reacts to Dual Demand and Supply Pressures
The combined effect of rising Chinese demand and Chilean supply loss is reshaping short-term copper market sentiment. Futures markets have responded positively, reflecting both physical tightness and speculative positioning.
In contrast to recent price corrections, current fundamentals support a firmer copper price floor. Traders are now watching closely for updates from Chinese customs, Codelco’s restart timeline, and global infrastructure spending trends.
ScrapInsight Commentary
Copper’s upward momentum illustrates the metal’s dual sensitivity to macro demand and mine-level disruptions. China’s rebound reinforces long-term demand strength, while Chile’s supply shock may tighten global availability into Q4. Expect sustained price support unless El Teniente resumes operations sooner than forecast.
