Copper Prices Shoot Higher With The Shock Of Chile Earth Quake
By Benny
Posted on : 3/4/2010
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The price of Copper has hiked to the highest level over the past five weeks.
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The price of Copper has hiked to the highest level over the past five weeks. Added to that, on Sunday after the huge earthquake on central Chile “The world's biggest and fourth largest copper miner” the prices have gone beyond the top mark.
This dreadful earthquake trekked the price of copper up by 2.1 per cent to $3.35 a pound for May delivery yesterday on New York Mercantile Exchange, after paring an earlier gain of over 6 per cent. Prices on futures of the metal traded on the London Metal Exchange (LME) touched $7,600 a tonne, the highest since 20 January.
Based on the present condition it’s evident that the direct impact on the copper mining sector is limited, But almost 800 people were killed and toppled buildings, shattered key highways and downed power lines were occurred.
Copper mine Manager Mr. Ricardo Alvarez said the recovery pace of output would depend on the electricity supply, which was partial. However they see no problems with its supply of electricity and fuel after a powerful quake downed lines and shut down oil refineries.
According to An Anglo American spokesman, there were no initial reports of major damage at the two mines, which together produce some 280,000 tonnes a year.
Bonnie Liu, analyst at Macquarie bank in Shanghai, predicted that copper prices could rise to $8,000 a tonne.
"This is going to create some short-term panic in the industry which means the price could remain at a very high level," Ms Liu said.
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About the author:
For the past three years I have been working for RecycleinME
.To help our valued members of RecycleinME, I involved in researching the current
market trend of various scrap materials.
Regards
Benny
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