Copper prices continue to rise as interest rate hike bets cool and the Chile copper mine accident occurs.

According to Golden Ten Data, traders have turned more optimistic about the interest rate outlook and are assessing the impact of a fatal mining accident in Chile on the supply side, pushing copper prices to expand their gains. On Monday, copper prices rose by as much as 0.6%. The pullback in oil prices has fueled expectations that central banks might postpone further rate hikes to curb energy-driven inflation. Meanwhile, investors continue to weigh geopolitical risks from escalating hostilities in the Middle East and await U.S. inflation data scheduled to be released mid-week. Rising borrowing costs usually weaken the appeal of non-yielding commodities.

In Chile, Codelco's giant El Teniente copper mine experienced an avalanche on Sunday, resulting in the deaths of two workers. The mine’s open-pit operations had already been suspended due to adverse weather. Codelco confirmed that both victims were employees of subcontractor San Lorenzo, and that open-pit operations had been halted at the time because of the poor weather conditions. This is the second fatal accident at the mining area in recent months; a previous avalanche in July claimed the lives of five workers.

As supply takes another hit, industrial metals are facing trade mismatches and global demand growth. Copper inventories in China remain low even after a week-long holiday, while an import demand indicator reached a four-year high last week, suggesting that buyers in the world's largest copper consumer may be restocking.

In the first half of the year, total output from the world's 15 major copper mining companies fell by 2.90% year-on-year, with Chile's output declining by 6.6%. Frequent accidents at major mines such as El Teniente and Escondida, coupled with falling ore grades, were the main drags.

As of press time, London Metal Exchange copper prices were up 0.79% to $14,642 per ton, with a cumulative gain of nearly 2% last week. Aluminum prices held steady, while zinc prices fell 0.81%.