China demands copper supply commitments for Anglo Teck merger approval, Reuters sources say

Teck Resources (TECK) announced that the United Steelworkers Local 7619 has authorized a strike at the Highland Valley Copper operation, starting October 24. The union represents over 1,200 employees at the site, who have been working without a contract since August 31. This could disrupt operations and impact production for the company.

Anglo American's Q3 steelmaking coal output rose 53% to 2.9M tonnes. The company is selling its Australian coal business for up to $3.875B, expected to close by Q1 2027. Copper production fell 5% to 174,900 tonnes due to weather and ore quality. Iron ore output declined 4% to 13.8M tonnes. Manganese ore production increased 6% to 1.03M tonnes. Copper Peru unit cost guidance lowered to 50 cents/lb. The company's merger with Teck is on track for March 2027.

Canada announced 30 new partnerships and investments in critical minerals, including CAD 1.5 billion for infrastructure and processing. Teck Resources received up to CAD 400 million for its Trail Operations facility. Canada also deepened ties with Chile, Peru, and Argentina for supply chain cooperation.

Copper prices fell for the third day due to US inflation data and easing supply concerns. Comex copper dropped 1.2% to $6.5810 per pound, while London copper fell 0.9% to $14,360 per tonne. Analysts cited profit-taking and technical deterioration. Antofagasta reported a 7% rise in Q3 production but lowered 2027 guidance, causing its stock to drop 6.4%. Other miners like Freeport-McMoRan and Southern Copper also declined.

JP Morgan upgraded Glencore to overweight with a £7.30 price target, citing copper production growth and hedges against geopolitical risks. Anglo American was lifted to neutral with a £38.50 target. Antofagasta, Fresnillo, AngloGold Ashanti, and Kumba Iron Ore were also mentioned with positive outlooks. The bank forecasts a copper supercycle and gold prices reaching $5,000 per ounce by late 2027.

China's antitrust regulator, SAMR, is demanding Anglo American commit to supplying steady copper concentrate to China for its merger with Teck Resources to be approved. This reflects China's struggle to meet its copper smelting industry's needs. Anglo American reports progress in negotiations, while analysts note potential impacts on global copper markets. The merger, announced in 2025, still requires China's approval and is expected to close by March 2027.