Copper Surpasses $5.8 per Pound Amid Chilean Strikes and Supply Pressures

Copper prices have maintained their upward momentum into the new year, approaching record levels as global supply pressures intensify.

Futures contracts for copper traded above $5.8 per pound, nearing historic highs last seen in July of the previous year. This rally comes amid growing concerns over possible U.S. tariff impositions, which have led traders to redirect copper shipments toward the U.S. market.

This shift has further reduced available supplies in key trading centers, particularly London and Shanghai.

Additional upward pressure on prices followed a labor strike at the Mantoverde mine in Chile, where workers are demanding a greater share of profits in light of the recent surge in industrial metal prices.

This has heightened supply disruption fears from one of the world's leading producers.

Meanwhile, market participants have monitored the U.S. attack on Venezuela and the arrest of its president, Nicolás Maduro, though these developments have had limited impact on copper markets due to Venezuela's minor role in the sector.

Last year, copper posted gains of over 40%, its strongest annual performance since 2009, driven by supply deficits, robust global demand, and escalating global trade tensions.