Copper price hits 2-yr peak on Chile strike fears [UPDATED]

Copper futures in London and Shanghai soared in early morning trading on Monday July 13 after miners in Chile declared they would strike over wages, Fastmarkets understands.

Unionized workers at Antofagasta’s Zaldivar mine voted to strike - scheduled for Wednesday July 15 - with 99% of members rejecting a pay offer, Reuters reported. As per Chilean law, the government must mediate between the parties before a strike can be made legal.

Zaldivar produced 54,000 tonnes of SX-EW copper cathodes in 2019, Antofagasta’s website said, less than 2% of Chile’s annual output, which is the world’s leading producing country for copper.

The London Metal Exchange 3-month copper contract traded over $6,600 per tonne on Monday, the highest its been since July 2018 and up by 3% on Friday’s market close, before declining to $6,575 per tonne.

In China, the Shanghai Futures Exchange active copper contract rose to 53,510 yuan ($7,643) per tonne on Monday, and also at a peak last reached in June 2018.

“A good arbitrage this morning caused premiums to trade over $100 per tonne, though they declined in the afternoon,” a Shanghai copper trader told Fastmarkets.

“Copper looks a little stretched,” Fastmarkets analyst Boris Mikanikrezai said.

What to read next
Glencore’s Gary Nagle might have spoken too soon when he said that his company wouldn’t be hit by a nickel fraud similar to that seen by its rival, Trafigura
Fastmarkets proposes to amend its steel cut-to-length plate carbon grade, fob mill US assessment to exclude material below 0.375 inches of thickness, which is sold with an added cost by several major mills.
The European Union’s much-anticipated Critical Raw Materials Act, announced on Thursday March 16 by European Commission president Ursula von der Leyen, has set out new lists of the raw materials now formally designated as strategic and critical
The London Metal Exchange is facing lawsuits seeking damages collectively worth more than half a billion dollars for losses that investors allege they suffered as a result of nickel trades being canceled by the exchange last year
The publication of a number of Fastmarkets’ price assessments was delayed on Thursday March 16 for technical reasons.
Continued tightness of class one supply within Europe and increased buying interest amid falling London Metal Exchange nickel prices and fresh liquidity have prompted an increase in premiums within Europe, while US and Chinese premiums remain steady for now
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.