adminLONDON. — The vast earthquake in Chile sent copper prices jumping to a three-week peak yesterday, as traders worried about possible supply problems in the top global producer. At 1230 GMT, copper rallied to US$6,734 per tonne, striking the highest point since March 10. “Copper has hit a three-week high as an enormous earthquake off the coast of Chile as sparked fears of a tsunami,” said IG analyst David Madden.
“Traders are concerned that copper supplies will suffer following the natural disaster.” Chile is the biggest copper producer in the world and accounts for almost one-third of global supplies.
Analysts noted however that no earthquake damage to copper facilities had been reported.
“The copper price climbed temporarily to a three-week high of over US$6,700 per tonne after a severe earthquake occurred off the coast of Chile overnight, giving rise to concerns about supply outages,” noted Commerzbank analyst Carsten Fritsch. “So far, however, there have been no reports of any damage, and some mining companies have already sounded the all-clear.” Copper has experienced volatile trading so far this year, diving last month on demand worries in top global consumer China. The market had plunged in March to the lowest level for three and a half years on fears about the impact of that China’s economic slowdown.
The base metal had dived on March 19 to US$6,321 per tonne, which was the lowest point since July 2010. — AFP.
Online Reporter