Copper continues to trade down on the last week of July even with a potential strike from the largest copper mine in the world and China’s measures to ease fiscal and monetary policies.
Copper in the Comex market has hit $6,080 per ton, dropping 17 percent after reaching its four-year highs in June, per Mining.com.
Strikes on the biggest copper mines
In Chile, workers at the Escondida copper mine—one of the biggest copper producers and accounts for 5 percent of the world’s copper supply—staged a 43-day strike that ended last March. The protest ended without any deal, and now, the miners are threatening another strike if BHP, the operator and majority owner of the said mine, did not improve its offer, according to Platts.
At the same time when copper traded down, workers at Codelco’s Chuquicamata copper mine went on a strike due to labor-related concerns similar to Escondida miners, a separate Mining.com article reported.
The Chuquicamata mine has produced 330,900 tons of copper in 2017, while Escondida’s output was 903,000 tons in the same year. With their combined output, the two mines provide 15 percent of the annual global copper supply.
China offers relief
Copper was recently affected by the ongoing trade war, and with China being the largest importer and consumer of the metal, its authorities provided steps to ease the economic impacts of tariffs set by the Trump administration. China’s State Council also promises to speed up the issuance of stimulus measures worth $280 billion that will focus on supporting infrastructure projects and on bigger tax deductions, similar to the U.S.’ move last year.
Additionally, the state council aims to make more companies eligible for tax cuts for research and development.
Copper prices to go up in the next decade
Though copper continues to fall, Citigroup analysts believe that the current trade situation offers a long-term buying opportunity. They said that the metal could outperform other commodities in the next few years based on the lack of mine supply growth, expecting its price to rise at $8,000 a ton by 2022 and $9,000 a ton six years later.
Lastly, Citigroup warns that copper will fall materially lower before it increases again if the trade war fully unfolds.
Expat leadership: Lessons from hugely successful immigrant women
Here are three things powerful immigrant professionals have in common that can help any aspiring workplace "outsider" lead a team.
Precious metals rise amid expectations of a Fed rate cut in July
Gold and the precious metals all rose as expectations rise for a Fed rate cut at the July FOMC.
Brain-powered hearing aids: The next big thing in biotech?
A team at Columbia University is creating hearing aids that use artificial intelligence (AI) and brain wave monitoring, bringing brain-powered...
Why feasibility studies are crucial when searching for specific types of upcoming projects
Feasibility studies indicate the potential of upcoming contracting opportunities in the public sector marketplace.
Will Fed easing turn out like ‘95 or ‘07?
The market is dangerously overvalued and global economic growth has slowed to a crawl along with S&P 500 earnings.
- Business4 weeks ago
How small construction companies can embrace new technology
- Business3 weeks ago
Why big data and machine learning is the future for commercial real estate
- Sponsored3 weeks ago
What the second half of 2019 holds for Bitcoin in Africa
- Crypto3 weeks ago
Using blockchain in high fashion