Copper edges to 3-week high as supply concerns mount

Copper rose to a three-week high on Wednesday, according to Business Recorder, as supply worries in top producer Chile lifted prices while investors waited for US inflation figures. On the London Metal Exchange, the three-month contract added 0.4 per cent, reaching $14,630 a metric ton during official trading, and it briefly hit $14,695. The metal's intraday peak was its strongest since September 23 and sat close to the record $14,875 reached last month.

At Centinela, a Chilean mine, talks between management and two unions resumed on Tuesday, seeking an end to a seven-day stoppage that workers say is hurting output. State miner Codelco has also partly halted activity at its El Teniente mine following a fatal landslide. Two sources told Reuters that supervisors at BHP's Escondida, the world's largest copper mine, reached a preliminary pact with the company, easing a strike risk that had supported prices.

StoneX analyst Natalie Scott-Gray said copper supply risks were tilted upwards, especially given El Nino and its possible effect on mine output, while investor bets kept prices elevated. She added that a breakdown in the copper-gold ratio highlights the metal's own geopolitical risk premium. Money markets price roughly a 20 per cent chance of a Federal Reserve rate increase this month, and higher rates typically weigh on industrial metals.