Copper reaches a two-week high, but investment shows caution.

The copper market is at a decisive moment, reaching a price of $9,175 per ton this Thursday, the highest level in two weeks. This increase has been driven by the overcoming of key technical levels, as well as supply fears caused by the strike at the Escondida mine, which is operated by BHP and is considered the largest copper mine in the world. However, despite this price surge, trading volumes have been low, reflecting caution among investors. During the week, copper traded 58,714 lots, a figure significantly lower than the 180,788 lots transacted in the week ending May 17. This decrease in trading activity suggests that investment funds are taking a defensive stance, sidelining copper in favor of other assets like gold and oil, which are attracting more interest at this time. Alastair Munro, chief strategist for Base Metals, told Reuters that trading volumes in metals like copper and aluminum have been significantly lower. This indicates a trend in which funds have decided to move away from copper, which reached an all-time high at the end of May due to speculation in the market. The recent decline in trading activity raises questions about investor confidence in the sustainability of copper prices. The situation in Chile, where the Escondida mine is located, is one of the main reasons behind concerns about supply. Workers at the mine have rejected BHP's request to suspend the strike, which could have a significant impact on production. However, BHP has yet to provide estimates on the effect of this strike on the amount of copper that could cease to be produced. Munro added that the market is likely to take time to react to any significant drop in physical supply that could result from the strike at Escondida. This means that, although prices have risen, the market may not be fully prepared for a potential supply shortage in the near future. In the broader context of base metals, other prices have also shown an increase. Aluminum rose by 1%, reaching $2,359.5 per ton; lead advanced by 1% to $2,029.5; and zinc added 2.4%, trading at $2,779.5. Tin and nickel also saw price increases, which could indicate a resurgence of interest in base metals, although with a predominantly cautious approach. Market analysts are closely monitoring the coming weeks, as any developments related to the strike at Escondida could have significant repercussions not only on copper prices but on the metals market as a whole. Expectations are focused on how investors will react to news coming from Chile and whether this situation will provoke a change in current market trends. In summary, the combination of a strike at the world’s largest mine and declining trading activity in the copper sector has led to an atmosphere of uncertainty. As funds shift their focus to other assets, the future of copper could be at stake, depending on the resolution of labor conflicts in Chile and how investors choose to react to these changes in the supply landscape. The coming week will be crucial in determining whether this recent price increase holds or if supply fears translate into even greater volatility in the market.