Copper Supply and Price Movements in Global Commodity Markets

As the global commodity market enters the final quarter of the year, copper prices are supported by production disruption risks, inventory changes, and artificial intelligence infrastructure needs. An avalanche disaster at the El Teniente mine in Chile increased supply concerns and pushed prices higher.

Current Situation in Copper Prices

While the global commodity market begins the final quarter of the year with two different signals, copper is supported by production disruption risks in mining and inventory changes. LME copper prices continue to hover near record levels.

An avalanche disaster at the El Teniente mine in Chile heightened supply concerns and pushed prices to the $14,620 level. The red metal posted a gain of approximately 8 percent in the third quarter of the year.

Technical Expectations and Targets

According to the analysis shared by Reuters based on price movements, if copper exceeds $14,926 per ton, the $15,869 to $16,631 range could come into play in the final quarter.

In the event of a potential downward correction, the $13,951 level stands out as a critical threshold to evaluate whether the bullish outlook is being maintained.

Pressure in the Aluminum Market

The aluminum market exhibits a more complex outlook compared to copper, with LME futures seeing their lowest levels since February.

A strong U.S. dollar, easing concerns over supply disruptions in the Gulf, and expanding production capacity in Indonesia have pulled prices down to $3,040 per ton.

Dollar Index and Foreign Exchange Impact

The trajectory of the dollar continues to remain among the main factors determining the direction of global metal prices.

Foreign exchange strategists predict that the dollar index could test the 104 level in the final quarter due to persistently high interest rates and inflation risks in the U.S.