Below are Views On Supply worries for Copper By Mr. Yash Sawant, Research Associate, Angel Broking Ltd
Supply worries for Copper
Supply worries for Copper continue to escalate after workers union at Chile's Andina copper mine (operated by state-owned Codelco) rejected the company offers igniting worries over a potential strike. Andina mines Copper output in 2020 stood at 184,000 tonnes which is about 3% of Chile's total output.
The Supply Chain for Copper was further threatened as the union of workers at BHP’s Escondida mine called in the labor group to vote for a strike after finding the company's contract offer insufficient.
Mounting supply concerns from major Copper producing nations, Chile & Peru, amid an accommodative approach by the US Federal Reserve is expected to be supportive for Copper; however, worries of slowdown in Chinese demand remains a considerable headwind for the entire pack.
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