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.
Rental real estate seen as a safe haven in France
The crowdfunding platform My Korner Shop has an original model of crowdfunding, investing in rental real estate, in this case...
UN calls for the cancellation of $236 billion in African debt
In response to the pandemic and the economic "tsunami" affecting developing countries, The United Nations Conference on Trade and Development...
A sharp drop in Italy’s GDP can no longer be avoided
Confindustria’s forecasts showed that a sharp drop in Italy’s gross domestic product (GDP) is now inevitable. The estimates are based...
Genfit is adapting its activities in accordance to the coronavirus pandemic
Biotech companies worldwide are trying to find a vaccine to halt the coronavirus pandemic. The French Group Genfit announced that...
Blockchain technology can help the energy industry be more efficient
BlockApps has entered into a partnership agreement with the consulting firm Optimum to develop block solutions for tracking how energy...
- Featured6 days ago
Why should banks and FinTech operators ally?
- Crowdfunding6 days ago
Several organizations accept donations in cryptocurrencies to fight the pandemic
- Biotech6 days ago
Italian biotech companies entered the race to find a vaccine against COVID-19
- Africa6 days ago
COVID-19 and the violent fall in oil prices wreak havoc on Africa’s economies