Copper Nears $14,700 a Ton as Strike Looms at World's Largest Copper Mine

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1 hour ago

Copper prices are pushing toward $14,700 per ton as workers at the world's largest copper mine threaten an imminent strike, while a Federal Reserve official played down the need for more than one additional rate hike this year.

The union representing roughly a quarter of the direct employees at BHP Group Ltd's Escondida copper mine in Chile said a strike will begin at 8 a.m. local time on Wednesday after wage negotiations failed to reach an agreement.

Any work stoppage would add to what has already been a bumpy year for Chilean copper supply.

Copper prices hit a record high of nearly $14,900 last month and have since hovered around that level amid uncertainty over Fed policy and the war in the Middle East.

U.S. consumer price data due on Wednesday will be closely watched, as it could influence the Fed's next move after September's first rate hike since 2023.

Ahead of the inflation data, New York Fed President John Williams said he still believes one more rate increase this year is appropriate, and that he sees no need for another hike in 2027.

Higher interest rates tend to weigh on metal prices by cooling the economy and raising costs.

London copper prices rose as much as 0.8% to $14,695 per ton, the highest level since Sept. 23, before trading at $14,666 by 12:29 p.m. Shanghai time. Aluminum, nickel and zinc also advanced.

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