Copper prices face weekly decline amid energy costs and supply concerns

Copper prices experienced a volatile week, facing their most significant weekly loss since May despite a slight uptick on Friday. Benchmark three-month copper on the London Metal Exchange rose 0.5% to $14,319 a metric ton during Friday's session, but the metal remained down approximately 2% for the week.

Several macroeconomic factors are influencing the market. High energy costs, driven by oil price surges linked to US-Iran tensions, have increased mining and manufacturing expenses. Additionally, a strong US dollar has made copper more expensive for international buyers, while signs of industrial weakness in China—the world’s largest consumer—have dampened demand sentiment.

On the supply side, inventories at the Shanghai Futures Exchange have dropped 79% over the last four months. In Chile, the world’s largest copper producer, production fell 12.8% year-on-year in August. Further supply concerns have emerged at the Escondida mine, where workers rejected a collective contract offer, raising the possibility of a strike.