(Bloomberg) -- Copper slipped after BHP Group’s Escondida mine in Chile, the world’s largest, averted a strike that would have tightened supply as the industry struggles to keep pace with demand from data centers and power grids.
Near-record copper prices have emboldened workers to seek a greater share of mining profits, while producers seek to contain rising costs. Two unions at Antofagasta Plc’s Centinela mine in Chile have been on strike for about a week.
Any stoppage would have added to a bumpy year for copper supply from Chile, where production has been hit by labor actions and weather-related disruptions. In August, the country had its worst month for copper output in more than 15 years.
Copper earlier approached an all-time high, with Europe’s top producer Aurubis AG stating that huge shipments of metal to the US are fueling tight market conditions. Comments from the smelter came after Benchmark Minerals reported that the company has offered a record premium of $347 a ton to supply its customers for 2027, marking a 10% increase over this year’s levels.
The surcharges — which customers pay on top of futures — are a widely watched gauge of supply and demand in the physical market. Traders have been shipping record volumes of copper to the US in advance of potential tariffs on the metal, tightening conditions elsewhere and helping to lift prices to record highs this year.