Chile
News

Copper closes at US$4.151/lb on renewed supply fears

Bnamericas Published: Friday, May 27, 2011
Copper closed Friday at US$4.151/lb cash on the London Metal Exchange, up from the previous day's close of US$4.078/lb and hitting its highest level since early May. Friday's close represented a 1.9% increase over May 20, Chile's state copper commission Cochilco said in its weekly report. Stocks fell by 4,938t to 625,276t, enough for 11.3 days of consumption. In May 23-27, red metal prices registered increased volatility, fluctuating between US$4.006-4.151/lb with a standard deviation of US$0.568/lb, Cochilco said. On May 23, flagging market sentiment - mainly prompted by concerns over the sovereign debt crisis in Greece and its possible contagion to Spain and Portugal - pushed the price down to just above the US$4/lb mark. Since then, all base metals started a mild upward trend to end on a stronger note by Friday, mainly propelled by each metal's own long-term strong market fundamentals, with nickel, aluminum and lead up by 5%, 4.1% and 2.4%, respectively, the commission said. However, the surge in copper was counteracted by a cautious stance in the markets and still weak Chinese red metal imports in April, which fell 10% month-on-month and 27% year-on-year. After hitting US$4.091/lb on May 25, the red metal dropped again the following day as a result of weaker than expected economic growth in the US. Copper bounced back up on Friday to its third highest price in the month due to a soft US dollar and renewed supply concerns, following the announcement of an indefinite protest by subcontracted workers at Chilean state copper producer Codelco's El Teniente division, which produces around 400,000t/y of fine copper. Codelco ruled out any impact to production but market players still fear constrained supply, even in the event of lower demand from China. In precious metals, gold closed Friday on a strong note at US$1,533.00/oz on the London Bullion Market, up from the previous day's US$1,518.50/oz and getting closer to its most recent all-time nominal high of US$1,541.00/oz on May 4. Silver closed Friday at US$37.69/oz, up from the previous session's US$36.95/oz, but still far from its 31-year peak at almost US$50/oz at the end of April.

To continue reading, subscribe to BNamericas to get all the information in this article and access to related news items and reports.

Subscribe to BNamericas and gain access to thousands of project profiles, key contacts and news.

Other projects in: Mining & Metals (Chile)

Get critical information about thousands of Mining & Metals projects in Latin America: what stages they're in, capex, related companies, contacts and more.

  • Project: Miocene
  • Current stage: Blurred
  • Updated: 4 months ago
  • Project: Atlas
  • Current stage: Blurred
  • Updated: 4 months ago
  • Project: Gorbea
  • Current stage: Blurred
  • Updated: 4 months ago
  • Project: Challacollo
  • Current stage: Blurred
  • Updated: 4 months ago
  • Project: Los Helados
  • Current stage: Blurred
  • Updated: 4 months ago
  • Project: Tranquilo
  • Current stage: Blurred
  • Updated: 4 months ago

Other companies in: Mining & Metals (Chile)

Get critical information about thousands of Mining & Metals companies in Latin America: their projects, contacts, shareholders, related news and more.

  • Company: Sociedad Contractual Minera Carola
  • Sociedad Contractual Minera Carola is a Chilean mining company owning and operating the mine Carola, a copper ore deposit located in the town of Tierra Amarilla, Region of Ataca...
  • Company: Aceros AZA S.A.  (AZA)
  • Aceros AZA S.A. is a Chilean company that manufactures long steel products through the ferrous scrap recycling process. AZA is dedicated to the production and supply of rolled s...