Copper steadies as dollar strength counters Chile supply worries

Copper prices held nearly steady on Tuesday as a firm US dollar countered support from supply concerns in top producer Chile.

Benchmark three-month copper on the London Metal Exchange fell 0.2% to $14,590.50 a metric ton by 0126 GMT, after hitting a two-week high in the previous session.

The most-traded copper contract on the Shanghai Futures Exchange was little changed at 110,720 yuan a ton.

The dollar hovered near an 18-month high, underpinned by safe-haven demand amid escalating tensions in the Middle East.

A stronger greenback makes dollar-denominated metals more expensive for holders of other currencies. Supply concerns remained in focus after Chilean state miner Codelco partially suspended operations at its El Teniente mine following a landslide, while Antofagasta’s Centinela copper mine and two unions were set to resume talks as a strike continued.

Copper inventories outside the United States have declined in recent months as shipments were diverted to the country ahead of potential tariffs on refined copper imports.

Analysts at BMI raised their average copper price forecast for 2026 to $13,500 per ton from $12,700, citing tariff-related market distortions and persistent supply constraints.

“For the remainder of the year, prices are set to oscillate sharply in response to tariff-policy headlines, with the eventual US decision likely to dictate near-term price direction,” BMI said.

Among LME metals, aluminium was down 0.4% at $3,039 after touching an eight-month low on Monday, zinc lost 0.6% to $3,735, lead was flat at $1,882, nickel fell 0.2% to $15,585 and tin eased 0.7% to $52,810.

Among SHFE metals, aluminium slipped 0.6%, zinc fell 1.3%, lead rose 0.3%, nickel dipped 0.4% and tin dropped 0.4%.