Copper prices surged as investors reacted to potential supply disruptions following a major power outage in Chile. The crisis has cast uncertainty over global copper availability, overshadowing trade concerns in the U.S.
Benchmark copper futures on the London Metal Exchange climbed 0.8% to $9,486.05 per ton, while March copper futures gained 0.9% to $4.7408 per pound. The market rally was fuelled by fears of production halts in Chile, the world’s largest copper producer, after a widespread blackout left much of the country’s mining region in the dark. Santiago declared a state of emergency, attributing the outage to a transmission failure in the north. As critical mining operations, including at the massive Escondida mine, came to a standstill, investors braced for potential supply shocks that could ripple across the industry.
Despite geopolitical noise, including former U.S. President Donald Trump’s renewed tariff threats on copper imports, markets remained focused on the more immediate supply risks. Trump, who had previously imposed 25% tariffs on steel and aluminium, signalled a similar move for copper to boost domestic production and curb China’s market influence. However, traders largely dismissed these concerns in favour of the pressing disruptions in Chile. If the power crisis persists, global copper supply chains could face significant strain, further fuelling price momentum.
Jubilee Metals Group plc (LON:JLP) is a diversified metal recovery business with a world-class portfolio of projects in South Africa and Zambia. The Company’s expanding multi-project portfolio across South Africa and Zambia provides exposure to a broad commodity basket including Platinum Group Metals, chrome, lead, zinc, vanadium, copper and cobalt.
