Copper prices rose on Monday on concerns about disruptions to supply in Chile alongside Chinese demand showing signs of picking up, according to Bloomberg.
What Happened: Workers union at BHP Group’s BHP operations center in Santiago rejected the company’s final wage offer raising the chances of a strike at the mines, according to the report.
Copper prices had surged to a record a week ago as Covid-19 upended supply chains, while stimulus measures supported economies and sparked a surge in demand. The metal hit $10,747.50 on May 10, an all-time high.
The rally stumbled last week along with other industrial materials after China stepped up efforts to cool a rally in commodities that is fanning fears over a global surge in inflation, according to the report.
Copper reached as much as $10,350 Monday morning in London and $10,306.50 in Shanghai.
Industrial output data from China on Monday showed aluminum and steel production hit new records in April amid robust demand and supply chain concerns.
Why It Matters: A recent Goldman Sachs report, as cited by CNBC, has estimated the ongoing supply crunch that the market is facing for copper — a key part of sustainable technologies, including electric vehicle batteries and clean energy — could help boost its price by more than 60% in four years.
According to the bank, increased demand and likely low supply are set to drive up the price from the current levels of around $9,000 per ton to $15,000 per ton by 2025.
Stocks with exposure to copper include Southern Copper Corporation SCCO, Freeport-McMoRan Inc. FCX, and BHP Group BHP.
Read Next: U.S. Gold Corp. Amplifies Potential of Copper with Copper King Gold Project
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