Copper rises due to supply risks

A strike occurred at BHP's Escondida copper mine in Chile, and since there is a risk that 5% or more of global supply will be interrupted, copper futures exceeded 4.1 dollars per pound in mid-August and hit a high for the first time in 2 weeks.

Since wage negotiations have not been settled at other copper mines in Chile, the risk of supply shortages has increased, and the market is strained.

On the demand side, US economic data exceeded expectations, easing concerns that a recession in the world's largest economy is imminent.

As inflation eased, the observation that the US Federal Reserve (Fed) would begin cutting interest rates in September was also unwavering.

Meanwhile, signs of sluggish demand in China, which is a major consumer country, continued to weigh on sentiment.

China's industrial production grew less than expected in July.

Deterioration in business conditions was also pointed out in China's latest manufacturing PMI report.