Copper Rises 1.6% Heading for Weekly Gain Amid Mine Supply Risks

The copper price on the London Metal Exchange rose 1.6% to $14,541 per ton at 16:04 GMT, heading for a weekly gain of 2%. The spot copper contract reached a $97 premium over the three-month contract, signaling tight near-term supplies in the markets.

The Yangshan premium index, which measures China's appetite for copper imports, ended the week at $135 per ton, its highest level in four years, following the country's return from a week-long holiday. Shanghai Futures Exchange inventories rose to 58,744 tons at the end of the week, up 20,000 tons from the end of September when they hit their lowest level since January 2024.

On-warrant inventories at the London Exchange fell to a six-week low of 233,025 tons after net outflows of 2,200 tons, while COMEX inventories reached a record 711,609 tons following six months of accumulation from U.S. shipments ahead of potential tariffs on refined copper. Morgan Stanley wrote that "Chinese demand remained resilient and supplies face significant disruptions," warning that a slowdown in U.S. stockpiling could make the market more flexible.

A union at the Centinela mine owned by Antofagasta in Chile stated that an ongoing strike will begin affecting production in November, after the company had previously downplayed its impact, raising risks of supply disruptions at other mines. As for other metals, zinc rose 2.4% to $3,808 per ton, tin 2.9% to $52,935, and aluminum 0.3% to $3,058.

What do these terms mean?

London Metal Exchange: The main global market for industrial metals trading, where copper, aluminum, zinc, and lead contracts are priced.

Yangshan Premium: A surcharge paid by Shanghai buyers above the global price of copper, used as a measure of China's import appetite.

COMEX: The metals futures exchange in New York, whose inventories are tracked as an indicator of U.S. demand and stockpiling volume.