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LONDON (Scrap Monster): Copper-supply challenges could re-emerge in the fourth quarter, said Deutsche Bank, the largest foreign exchange dealer in the world.

According to the German bank, the latest data from the International Copper Study Group show that refined supply is still failing to keep pace with global demand due to factors such as declining ore grades, labor disputes, technical difficulties and temporary shutdowns.

Meanwhile, the upcoming expiration of a number of labor contracts means risks for production losses in the fourth and first quarters.

“Labor-related disputes have been relatively muted in the copper market so far this year; however, demand for wage hikes by miners in South Africa could spread to other mine-producing countries like Chile,” the bank added.

“Furthermore, with copper prices remaining significantly above the marginal cost of production; we believe that labor unions are likely to negotiate for better terms,” they noted.

Also, Chile—which accounts for 22% of new global supplies—is expected to face power shortages and cost inflation, Deutsche Bank concluded.