FX.co ★ Copper Steadies Amid Supply Concerns

Copper held near $6.25 per pound on Monday, stabilizing after last week's sharp volatility, as ongoing supply concerns continued to counterbalance uncertainty on the demand side. A severe storm in top producer Chile disrupted operations at multiple copper mines and ports in the country’s central region, prompting major miners, including Codelco, Antofagasta, and Anglo American, to implement safety protocols.

Antofagasta reported that its copper output for the first half of the year declined 9.5% to 285,000 tonnes, reflecting weaker production at two key mines. BHP also cautioned that its Chilean copper production is likely to fall next year. At the same time, the International Energy Agency warned of tightening sulphuric acid supply linked to the escalating conflict in the Middle East.

In the latest geopolitical developments, the US military launched new airstrikes against Iran following the deaths of three American service members, while Tehran reported that it had intercepted four vessels transiting the Strait of Hormuz.