Chile's Antofagasta expects copper demand to defy tariff turmoil
He also said President Donald Trump's policies could lead to a more favourable environment for investment in mining.
Trump's announcement of tariffs last week, followed by retaliation from China, has caused turmoil on financial markets and sent copper prices plunging.
Antofagasta CEO Ivan Arriagada said in an interview on the sidelines of the CESCO copper conference in Santiago that he expected supplies of copper, needed for construction and the transition to a lower carbon economy, would remain in limited supply.
That meant he was more concerned about the impact on the wider economy of the trade war, which could ultimately reduce copper demand, than the resilience of the copper market itself.
Should a global economic slowdown destroy demand for copper from construction and infrastructure, Arriagada said he expected use by data centers, renewable energy and AI to compensate.
Trump has yet to announce special measures for copper, but his administration is looking into potential tariffs.
Arriagada said Chile, the world's biggest copper producer, was in a good position to avoid U.S. tariffs as the United States has a trade surplus with Chile, a free-trade partner that provides more than half of U.S. copper imports.
London-listed Antofagasta operates four copper mines in Chile and is developing a mine in the United States. It targets output of 660,000 to 700,000 metric tons this year, after producing 664,000 tons last year.
Its Twin Metals copper and nickel mine project in Minnesota needs to resolve a lawsuit over permitting, and then obtain the necessary approvals.
"In the current environment, where there is a lot more support for mining investment, it should be easier and should happen," Arriagada said, although he added there was no sign yet of progress.
As U.S. clients rushed to stockpile in many sectors ahead of Trump's announcement last week, Antofagasta sent only a small additional amount of copper to the United States, Arriagada said, without giving details.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
an hour ago
- Reuters
China's refined oil exports up 7.1% yoy, hit 13-month high
Aug 18 (Reuters) - China's exports of refined products, including diesel, gasoline, aviation fuel, and marine fuel, rose 7.1% year on year to 5.34 million tons in July, according to customs data, maintaining the strong momentum from last month and reaching the highest monthly total since June 2024. Diesel, gasoline, and aviation fuel exports in July all saw year-on-year increases and showed strong export momentum. Diesel exports surged in July, up 53.2% year on year to 820,000 tons, reaching the highest level since September 2024. Exports for the first seven months were down 37.7% to 3.63 million tons. Gasoline exports stood at 930,000 tons in July, up 18.6% year on year. From January to July, China exported 4.82 million tons of gasoline, down 15.6% compared with the same period last year. China's exports of aviation fuel rose 10.9% year on year to 1.97 million tons in July, reaching the highest level since March 2025. In the first seven months of the year, China's aviation fuel exports were up 4.3% to 11.92 million tons from last year. The data also showed that imports of liquefied natural gas fell 6.7% year on year to 5.44 million tons in July. However, China's LNG imports showed an increase from June, hitting the highest level since January this year.
Reuters
an hour ago
- Reuters
European stocks, US dollar drift as traders eye Ukraine talks
SYDNEY, Aug 18 (Reuters) - European shares and the U.S. dollar wobbled on Monday ahead of what is likely to be an eventful week for U.S. interest rate policy, while oil prices were subdued as risks to Russian supplies seemed to fade somewhat. The pan-European STOXX 600 index (.STOXX), opens new tab was little changed in early trading after hitting its highest level since March on Friday, while the MSCI All Country World Index (.MIWD00000PUS), opens new tab hovered close to the record high touched last week. Earlier in the Asian session, a cautiously risk-on mood saw indices in Japan and Taiwan make record peaks, while a gauge of Chinese stocks (.SSEC), opens new tab reached its highest level in a decade. Investors are bracing for U.S. President Donald Trump's meeting with Ukrainian President Volodymyr Zelenskiy and European leaders later on Monday to discuss the next steps to end the war in Ukraine, after Trump's summit with Russian President Vladimir Putin in Alaska on Friday. While the summit did not result in an agreement, Trump afterward appeared more aligned with Moscow on seeking a full peace deal with Ukraine instead of a ceasefire first. The major economic event of the week will be the Kansas City Federal Reserve's August 21-23 Jackson Hole symposium, where Chair Jerome Powell is due to speak on the economic outlook and the central bank's policy framework. Markets imply around an 85% chance of a quarter-point rate cut at the Fed's meeting on September 17, and are priced for a further easing by December. "We see three rate cuts in the U.S. this year, and slower GDP growth but no recession," said Mark Matthews, head of research for Asia at Bank Julius Baer in Singapore. "The combination of those two should allow the rally to continue." The prospect of lower borrowing costs globally has underpinned stock markets, and Japan's Nikkei (.N225), opens new tab climbed to a fresh record high. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), opens new tab added 0.3%, having scaled a four-year peak last week. In Europe, Germany's DAX (.GDAXI), opens new tab eased 0.3%, dragged lower by Commerzbank ( opens new tab, which fell 3.7%. Britain's FTSE (.FTSE), opens new tab was flat. S&P 500 futures eased 0.1% while Nasdaq futures were flat, though both were near all-time highs. Valuations have been underpinned by a solid earnings season as the S&P 500 EPS grew 11% on the year and 58% of companies raised their full-year guidance. "Earnings results have continued to be exceptional for the mega-cap tech companies," said analysts at Goldman Sachs. "While Nvidia has yet to report, the Magnificent 7 apparently grew EPS by 26% year/year in 2Q, a 12% beat relative to consensus expectation coming into earnings season." This week's results will provide some colour on the health of consumer spending with Home Depot, Target, Lowe's and Walmart all reporting. In bond markets, the chance of Fed easing is keeping down short-term Treasury yields while the longer end is pressured by the risk of stagflation and giant budget deficits, leading to the steepest yield curve since 2021. European bonds also have been pressured by the prospect of increased borrowing to fund higher defence spending, pushing German long-term yields to 14-year highs. Wagers on more Fed easing have weighed on the dollar, which dropped 0.4% against a basket of currencies last week to last stand at 97.858 . The dollar was flat on the yen at 147.24 , while the euro held at $1.17 after adding 0.5% last week. The dollar has fared better against its New Zealand counterpart as the country's central bank is widely expected to cut rates to 3.0% on Wednesday. In commodity markets, gold bounced 0.5% to $3,343 an ounce after losing 1.9% last week. Oil prices struggled as Trump backed away from threats to place more restrictions on Russian oil exports, although White House trade adviser Peter Navarro said India's purchases of Russian crude were funding Russia's war in Ukraine and had to stop. Brent was flat at $65.81 a barrel, while U.S. crude steadied at $62.81 per barrel.
Reuters
2 hours ago
- Reuters
China extends probe into EU dairy products to February 2026
BEIJING, Aug 18 (Reuters) - China's Commerce Ministry on Monday extended its anti-subsidy investigation into dairy products from the European Union to February 21, 2026, according to a ministry statement.
