The copper market is facing some severe shortages that should help drive prices to new record highs. Barclays Capital sees the copper market in a 700,000 metric ton deficit this year.
Add to that some global strike action at various mines and a perfect storm is forming for copper prices.
Workers at Codelco in Chile, the world’s largest copper producer, are set to strike for 24 hours staring on Monday to protest an overhaul of the country’s giant state mining company.
A strike for higher pay has paralyzed production at Freeport McMoRan’s copper and gold mine in Papua, according to workers on Wednesday, the latest disruption to a fragile copper supply pipeline that is providing a floor for prices.
A series of bad-weather related events and industrial action has put strain on a market that many believe will deepen into deficit this year, propping up prices of the metal on the London Metal Exchange.
Chilean miner Antofagasta said last month that the ramp-up of its Esperanza mine, expected to contribute the lion’s share of supply growth this year, would be completed in the second half, after taking longer than planned.
Shayne Heffernan
Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.
Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.
