Chile: Copper prices surge in October
Copper prices rose notably in October, coming in at USD 9,829 per ton on average, compared to September’s USD 9,325 per ton. Prices were 46.4% higher than in the same month last year and 26.5% higher year-to-date.
The higher October reading was likely the result of solid demand, unrest at the Las Bambas mine in Peru, stockpile drawdowns by traders and concerns over the impact of surging energy prices on copper output. Indeed, LME copper inventories hit a multi-decade low in the month. That said, Chilean copper output should have benefited from the resolution of mining disputes, following a 6.9% annual fall in production in September.
Looking forward, copper prices are seen ebbing somewhat next year as global growth slows and supply concerns gradually ease. However, sustained demand from the electric vehicles and renewable energy sectors should provide some support.