Copper Jumps as Miner to Halt Output in Peru Amid Protests
Comment of the Day

December 16 2021

Commentary by Eoin Treacy

Copper Jumps as Miner to Halt Output in Peru Amid Protests

This article for Bloomberg may be of interest to subscribers. Here is a section:

It’s the second Peruvian mine to suspend production this week after Nexa Resources SA halted Cerro Lindo, although Prime Minister Mirtha Vasquez said Wednesday that police had dispersed protesters at that zinc operation. 

And

A prolonged shutdown at a mine that before the pandemic accounted for almost 2% of the world’s mined copper would further tighten global supplies that have been hit with shipping snarls and low warehouse inventories. Las Bambas has 60,770 tons of copper stranded on site. 

 

Eoin Treacy's view

The global market remains tight and susceptible to supply disruptions. The sensitivity of the market has also been exacerbated by the surge in demand from transportation and energy infrastructure projects. In just the same way that autos are now competing with traditional demand for semiconductors, auto and wind turbine motors, recharging stations and sub-sea cables are competing with telecommunications, construction, and power line demand for copper.

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