Copper Holds Elevated Levels

Copper futures in the US rose past $6.61 per pound, not to far from the record high of $6.8 touched one-month prior amid mounting threats on global supply and persistent levels of speculative demand increases. The risk of import tariffs on unprocessed copper goods triggered a surge in buying to front-load deliveries. Consequently, the prompt spread in major western exchanges surged. Earlier threats of US duties prompted traders to redirect shipments to American warehouses, contributing to the recent rally in prices. Meanwhile, a strike in Antofagasta's Centinela mine is due to start limiting output from one of the world's largest mines in the second half of October. On the demand side, soaring orders for data centers, chip development, and battery storage centers for AI and electric vehicles in Asia continued to support the bull case for copper. Near-term purchasing was also due in China as manufacturers returned from holiday with low inventory.