Copper steadies amid supply concerns

Copper futures held near $4.56 per pound on Monday after slipping slightly last week, supported by expectations of tighter supply.

Chile’s state-owned miner Codelco said its largest operation, El Teniente, may take longer than expected to return to full capacity following a deadly tunnel collapse in July.

The company had already projected a 33,000-ton shortfall this year. Still, Chile expects national output to increase in both 2024 and 2025, with plans to reach a record 6 million tons by 2027, despite setbacks at Codelco and disruptions at Teck Resources.

Even so, recent production data highlighted resilience, with Codelco reporting July output of 118,500 metric tons, up 6.4% from a year earlier, while BHP’s Escondida mine produced 114,800 metric tons, a 7.8% gain.