Copper rises as Chile stoppage stirs fresh concerns about supply
Six people were killed in a tunnel collapse triggered by an earth tremor at El Teniente, which accounts for over a quarter of Codelco's output. Underground operations are halted and — with the company launching an investigation into the causes — it's unclear how long the stoppage will last or whether it will trigger changes to Codelco's output goals.
El Teniente produced 356,000 tons of copper last year, making it Codelco's single biggest mine. That volume is equivalent to more than a month of Chinese imports of refined copper.
Copper rose 0.4% on the London Metal Exchange to reach $9,672 a ton by 11:12 a.m Shanghai time. The market was buffeted last week by the shock US move to exclude refined metal from newly-imposed import tariffs, with the LME price posting its lowest close since early June on Thursday.
The mine's stoppage comes as the world's copper smelters face intense competition to secure mine supply. Treatment fees — typically the main earner for smelters — remain at deeply negative levels on a spot basis, and plants in the Philippines and Japan have cut output or closed. Even in China, where output has remained robust, there is some speculation that production is reaching a limit.
Investors are also monitoring other unexpected mine disruptions, including at the massive Kamoa-Kakula complex run by Ivanhoe Mines Ltd. in the Democratic Republic of Congo. Still, Ivanhoe executives on Friday delivered an upbeat assessment on prospects for returning that mine to previous output guidance.
Other metals opened Monday flat to higher, gaining support from a weaker dollar. Iron ore futures in Singapore rose 0.9% to $100.95 a ton, paring their biggest weekly decline since April. Aluminum and zinc also rose. –BLOOMBERG
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
9 minutes ago
- The Star
German minister: EU must become stronger in Trump tariff talks
Containers are stacked, after U.S. President Donald Trump threatened on Saturday to impose a 30% tariff on imports from Mexico and the European Union starting on August 1, in the harbour of Duisburg, Germany, July 14, 2025. REUTERS/Thilo Schmuelgen WASHINGTON (Reuters) -German Finance Minister Lars Klingbeil said the European Union had been too weak during trade negotiations with the United States and it should become stronger, as much still needed to be clarified on the deal the two sides struck last month. "Overall, as Europeans, we must become stronger," Klingbeil said in Washington ahead of a meeting with U.S. Treasury Secretary Scott Bessent. "Then we can also stand up to the U.S. with more self-confidence. Not against the U.S., but in dialogue with the U.S." Klingbeil said there needed to be a quick solution to the trade conflict with the U.S. as companies needed planning certainty. "Even though I am not the one negotiating today — that is the task of the European Commission — a close line of communication between me and Scott Bessent can help clarify things," he said, emphasizing the importance of the Transatlantic relationship. Apart from tariffs, Klingbeil and Bessent will discuss how to deal with cheap Chinese goods that are flooding the markets in both the U.S. and Europe, as well as the G20 presidency that the U.S. will take at the end of the year. "I believe it is important that we, from the German side, keep sending a clear signal: We want to work closely with the American government, we seek dialogue, we do not shy away from difficult topics and are looking at how we can solve problems together," Klingbeil said. The EU's trade deal with Trump in July was greeted with a mix of relief and anger, with tariffs set at 15% for most products but negotiations continuing for certain sectors, including steel and aluminium, which carry tariffs of 50%. Klingbeil would advocate for a quota system on steel exports to be included in the trade deal, he told reporters. (Reporting by Maria Martinez; Writing by Matthias Williams; Editing by Alex Richardson)
New Straits Times
2 hours ago
- New Straits Times
China racing to become world No. 1 AI player
Beyond dancing robots and eager-to-help digital avatars, Shanghai's World AI Conference (WAIC) saw China stake its claim to global artificial intelligence leadership and frame itself as a clear alternative to the United States. Assumptions that the US was far ahead in the fast-moving field were upended this year when Chinese start-up DeepSeek unveiled a chatbot that matched top American systems for an apparent fraction of the cost. With AI now at the forefront of the superpowers' tech race, the WAIC that ended on Tuesday saw China set out its case to take charge on shaping its global governance, too. China, the US and other major economies are "engaged in a marathon at Formula One speed", said Steven Hai, assistant professor of tech innovation at Xi'an Jiaotong-Liverpool University. "Which country will attain the upper hand can only be assessed dynamically over the course of development." China and the US dominate the AI sector — only 10 to 15 per cent of models developed in recent years were built without either's participation, according to Epoch AI, a non-profit research institute. While US companies like Google and OpenAI are still industryl e a d i n g , t h e i n s t i t u t e labelled 78 per cent of Chinese models "state- of-the-art" co mpared with 70 per cent of models built with American participation. B eijing's stated aim is to become the world's leading AI "in novation centre" by 2030. "Now China is neck-and-neck with the United States in terms of core tech, that play (for global leadership) is more relevant than ever," said Tom Nunlist, associate director for tech and data policy at Trivium China. "With a solid AI offering and the US turning inwards, the question is will Beijing's vision gain greater global traction?" In May, Microsoft's Brad Smith told the US Senate that "the number-one factor" in the tech race "is whose technology ismost broadly adopted in the rest of the world". China's offer is technical and economical. "One of the biggest differences (with the US sector) is that most of the leading models in China... are open-weight and open-source," former Google CEO Eric Schmidt told an audience at the WAIC. That means they can be adapted by other countries to fit their own needs, said George Chen, partner at Washington-based policy consultancy The Asia Group. "We already see some countries like Mongolia, Kazakhstan, even Pakistan, are trying to adopt the DeepSeek model to build their own," he said. "China has a chance to win in the aspect of sovereign AI to export its model to those countries." The comparative low cost of Chinese technology — s oftware but also hardware, for example through firms like Huawei — will be a big factor, especially for developing countries, Chen added. On Monday another Chinese start-up, Zhipu, announced its new AI model — also open-source — would cost less than DeepSeek to use. In June, OpenAI accused Zhipu of having close ties with Chinese authorities and noted that it was working with governments and state-owned firms across Southeast Asia, the Middle East and Africa. "The goal is to lock Chinese systems and standards into emerging markets before US or European rivals can," it said. Washington has moved to protect its lead in AI, expanding efforts to curb exports of state-of-the-art chips to China in recent years. "While limiting China's share of the global AI hardware market, (these measures) have accelerated indigenous innovation and led Chinese firms to exploit regulatory loopholes," said assistant professor Hai, referring to "ri fe" smuggling and circumvention. Other challenges to homegrown firms include the closed nature of the Chinese Internet, and "g eneral issues of trust when it comes to using Chinese tech", Trivium's Nunlist said. At the WAIC, China sought to present itself as a responsible p ower. Premier Li Qiang emphasised the risks of AI and pledged to share technology with other nations, especially developing ones. His remarks contrasted sharply with US President Donald T ru mp's aggressive low-regulation "AI Action Plan" launche d just days before and explicitly aimed at cementing US dominance in the field. China released its own action plan at the WAIC, following a meeting attended by delegates from dozens of countries. Li also announced the establishment of a China-led organisation for international AI cooperation.
Malaysian Reserve
5 hours ago
- Malaysian Reserve
Copper rises as Chile stoppage stirs fresh concerns about supply
COPPER rose for a second day as Chilean mining giant Codelco grappled with the aftermath of a deadly accident at one of the world's biggest underground mines. Six people were killed in a tunnel collapse triggered by an earth tremor at El Teniente, which accounts for over a quarter of Codelco's output. Underground operations are halted and — with the company launching an investigation into the causes — it's unclear how long the stoppage will last or whether it will trigger changes to Codelco's output goals. El Teniente produced 356,000 tons of copper last year, making it Codelco's single biggest mine. That volume is equivalent to more than a month of Chinese imports of refined copper. Copper rose 0.4% on the London Metal Exchange to reach $9,672 a ton by 11:12 a.m Shanghai time. The market was buffeted last week by the shock US move to exclude refined metal from newly-imposed import tariffs, with the LME price posting its lowest close since early June on Thursday. The mine's stoppage comes as the world's copper smelters face intense competition to secure mine supply. Treatment fees — typically the main earner for smelters — remain at deeply negative levels on a spot basis, and plants in the Philippines and Japan have cut output or closed. Even in China, where output has remained robust, there is some speculation that production is reaching a limit. Investors are also monitoring other unexpected mine disruptions, including at the massive Kamoa-Kakula complex run by Ivanhoe Mines Ltd. in the Democratic Republic of Congo. Still, Ivanhoe executives on Friday delivered an upbeat assessment on prospects for returning that mine to previous output guidance. Other metals opened Monday flat to higher, gaining support from a weaker dollar. Iron ore futures in Singapore rose 0.9% to $100.95 a ton, paring their biggest weekly decline since April. Aluminum and zinc also rose. –BLOOMBERG
