The Zhitong Finance App notes that the price of copper is approaching 14,700 US dollars per ton because workers at the world's largest copper mine threatened an imminent strike, while a Federal Reserve official downplayed the possibility that more than one additional rate hike will be needed this year.
A trade union representing about a quarter of Chile's Escondida (Escondida) copper mine owned by BHP Billiton Group, which has always been employees, said the strike will begin at 8 a.m. local time on Wednesday after salary negotiations failed to reach an agreement. Any shutdown would worsen an already difficult year for Chilean copper supply.
Copper prices hit an all-time high of nearly $14,900 last month, and have been hovering around this level ever since against the backdrop of uncertainty about the Federal Reserve's policies and the impact of the Middle East war. The US consumer price data due to be released on Wednesday will be closely watched as it could influence the Federal Reserve's next move after the first rate hike since 2023 in September.
Prior to the release of the inflation data, New York Federal Reserve Chairman John Williams said he still believes it is appropriate to raise interest rates again this year, and he believes there is no need to raise interest rates again in 2027. Higher interest rates will act as a drag on metal prices by cooling the economy and driving up costs.
London copper prices rose 0.8% to 14,695 US dollars per ton, the highest level since September 23, and then reported 14,666 US dollars at 12:29 p.m. Shanghai time. Aluminum, nickel, and zinc are also higher.