Current situation:

• The producer price index for copper tube and fittings was down 2.8% month-over-month (up 19.0% in the last update), but they were up 85.8% year-over-year (up 98.9% Y/Y last month).

Key factors that could affect supply or price:

• Prices: Copper is currently trading at $4.23 lb., down from the 7-year high of $4.74 lb. in May, 43.46% higher over the past year and 19.91% higher YTD. 
• The Escondida mine was able to avert a strike (producer of 5% of total global copper output), but two smaller mines in Chile are currently under strike. Inventories are generally lower than they would be in a normal recovery cycle and spreading Delta variant risk is still a factor limiting output. Demand remains strong and electrical appliances, automotive, home wiring and other copper competitor markets are seeing strong demand as well. These are factors keeping the price of copper higher in the short term.