Copper prices advance on supply disruptions after Chilean catastrophe

Copper prices rose by 1% on Monday, driven by supply concerns following a deadly collapse at a mine in Chile, the world's largest copper producer. However, the gains remained limited due to ongoing worries about the global economy.

The three-month copper futures contract on the London Metal Exchange reached $9,722.50 per metric ton by 09:30 GMT, continuing the modest gains recorded on Friday.

Copper in London has rebounded by 20% since hitting a more than 16-month low in April but has retreated since surpassing the $10,000 mark in early July.

Chilean state-owned giant Codelco suspended operations at its El Teniente mine last week following a seismic event and collapse that killed six workers.

The mining minister stated on Sunday that officials will determine when it is safe to resume operations at the mine, which produced 356,000 tons of copper last year.

Additional supply concerns emerged in Japan, where Mitsubishi Materials announced on Monday that it is considering reducing copper concentrate processing at its Onahama smelter and refinery.

"This is supporting prices and helping to offset some of the growth-related worries after Friday’s jobs report," said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.

Friday’s US jobs data came in weaker than expected, pointing to a sharp deterioration in labor market conditions.

Hansen added, "It’s becoming clear that tariffs are starting to take effect, and what we’ve seen so far may just be the beginning. This will keep the market defensive in the short term."

In China, the most-traded copper contract on the Shanghai Futures Exchange rose 0.1% to 78,330 yuan (approximately $10,915.70) per ton.

Aluminum on the LME added 0.5% to $2,579.50 per ton, zinc rose 0.9% to $2,750.50, nickel gained 0.3% to $15,025, lead climbed 0.2% to $1,975.50, and tin advanced 0.3% to $33,465.

The US Dollar Index fell 0.4% to 98.7 points by 16:01 GMT, after hitting a high of 98.9 and a low of 98.5.

Meanwhile, US copper futures for September delivery held steady at $4.43 per pound by 15:59 GMT.