Despite a speculative plunge in the entire commodity market, Copper prices were able to gain 1.27% last week. It made a high of 780.50 and settled at 775.85 as compared to previous week’s close of 766.40. As optimism over China and potential supply disruptions supported from the lower level.
High-grade copper futures up 2.29% to $4.1085 a pound, it was best weekly performance since 9 January 2023.
Copper prices paused its three week falling trend as China, the world’s largest copper importer, flagged more stimulus measures to shore up economic growth. The move renewed optimism over a Chinese economic recovery after the country relaxed most anti-COVID measures earlier this year.
Furthermore, a deepening dispute between the Panama government and foreign copper miners also threatened to suspend the country’s copper exports, which could limit supply and push up prices.
First Quantum Minerals Ltd (FM.TO) has warned employees it may have to shutter operations in Panama if the government does not allow its copper exports to resume by next week, according to a memo sent to staff and seen by Reuters.
A long-running contract dispute between the Canadian miner and Panama officials centers on disagreements over tax rates and royalties at the Cobre Panama mine.
In the latest twist, Panama’s maritime authority last month ordered First Quantum to suspend copper concentrate loading operations at a major port, essentially blocking the company from shipping and selling its copper.
