Copper Holds Near Record High

Copper futures in the US traded near $6.70 per pound, remaining close to the record high of $6.80 touched on September 8th, amid sharp setbacks to global supply and robust demand from electrification. Operations were suspended without a timeline for restart at BHP's Escondida copper mine in Chile—the largest in the world—after an accident resulted in the death of a worker, raising the risk of strikes while union members were already in contract negotiations with the mining giant. The disruption magnifies supply pressures as multiple refineries in China schedule maintenance at the start of the fourth quarter. Consequently, the copper prompt spread on the LME widened to its highest level so far this month. Meanwhile, manufacturing activity in the US surged during September, reflecting solid demand for the base metal. Longer-term demand is also underpinned by soaring orders for global electrification projects, including data centers in the US and energy storage infrastructure in China.