Commodity News Update

Advisory Bazaar Info Services LLP

🌍 Global Macro & Geopolitical Developments

🔹 The US-Iran conflict has escalated further. US President Donald Trump said he is “seriously considering” resuming large-scale military operations against Iran and is close to making a decision. The US has also deployed B-1 bombers. Meanwhile, the US House passed another resolution calling for an end to hostilities, while the Senate blocked a similar measure.

🔹 US Initial Jobless Claims for the week ended July 18 came in at 187,000, significantly below the market expectation of 212,000, highlighting the continued resilience of the US labor market and supporting the US dollar.

🔹 The European Central Bank (ECB) left its key interest rates unchanged, in line with expectations. ECB President Christine Lagarde stated that the full inflationary impact of higher energy prices has yet to emerge and warned that prolonged elevated energy costs could trigger broader inflationary pressures. Markets are now pricing in two additional ECB rate hikes by the end of the year.

⛏️ Heavy Snowfall Disrupts Copper Mining in Chile

🔹 Heavy rainfall and snowfall across central Chile and the Atacama region have prompted several copper mines to activate winter emergency measures.

🔹 Los Pelambres has restricted site access and reduced non-essential operations as a precaution, while Codelco’s Andina suspended surface operations. El Teniente also temporarily halted open-pit ore transportation due to heavy snow accumulation.

🔹 Caserones has been the hardest hit. Since July 18, operations have been suspended due to heavy snowfall, blocked road access, and a power outage. The mine is currently relying on backup generators to maintain critical activities. Although production has not yet resumed, the company has maintained its full-year production guidance.

📌 Market Impact:

The disruptions remain largely confined to central Chile and a few high-altitude mining operations. Most major copper mines in northern Chile continue to operate normally, preventing any widespread supply disruption. The market will closely monitor the resumption of production at Caserones and the restoration of road access and power supply.