METALS-Copper rises on critical mineral status prospects, Chile regulatory moves

By Lucas Liew

Aug 26 (Reuters) - Copper prices rose across major exchanges on Tuesday on U.S. efforts to classify the metal as a critical mineral, while regulatory developments in Chile fueled supply concerns.

Three-month copper on the London Metal Exchange CMCU3 rose 0.56% to $9,851.5 per metric ton by 0207 GMT, while the most-traded copper contract on the Shanghai Futures Exchange SCFcv1 edged up 0.28% to 79,510 yuan ($11,115.77) a ton.

Copper is expected to gain increased interest as the U.S. seeks to elevate its significance, with the U.S. Geological Survey proposing copper's addition to the 2025 draft list of critical minerals, said analysts from ANZ.

"Inclusion would enable funding incentives and streamlined permitting for exploration, mining and processing projects."

LME copper is expected to trade rangebound over the next three weeks, with mild downside risk due to high inventories in the long run and post-tariff normalization, according to commodities consultancy BigMint.

The downside is limited by key support levels, while gains are constrained by weak demand and economic uncertainty. While volatility persists, aggressive gains look unlikely, it added.

Meanwhile, Chile's mining regulator Sernageomin has imposed additional requirements on Codelco for resuming operations in areas affected by a deadly collapse at its El Teniente copper mine in July.

Codelco, the world's largest copper producer, had cut its copper forecast for the year due to the impact of the incident.

Among other London metals, aluminium CMAL3 eased 0.13% to $2,621 a ton, nickel CMNI3 lost 0.23% to $15,065, and zinc CMZN3 dipped 0.27% to $2,810.5, while lead CMPB3 gained 0.3% to $2,001, and tin CMSN3 rose 0.25% to $33,895.

SHFE aluminium SAFcv1 edged up 0.05% to 20,750 yuan, nickel SNIcv1 increased 0.09% to 120,380 yuan, lead SPBcv1 gained 0.42% to 16,915 yuan, tin SSNcv1 climbed 0.22% to 269,630 yuan, and zinc SZNcv1 eased 0.13% to 22,325 yuan.

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DATA/EVENTS (GMT)
1230 US Durable Goods July

1400 US Consumer Confidence August

($1 = 7.1529 Chinese yuan)

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