Small wonder that copper prices are experiencing aftershocks of their own following this weekend’s massive earthquake in Chile. The Latin American economy is the world’s largest copper producer and millions are awaiting signs of a long-term supply disruption.
Mine production has been halted in the copper-rich nation as Chile copes with a wave of aftershocks, reports Alix Steel for The Street. What it means in the long term is up in the air; can Chile get its mines up and running again quickly? Or are the temblors signs of more trouble to come for the nation? Chile accounts for one-third of global mine production, so any lingering troubles could have a noticeable global impact.
Analysts say that while the copper mine interruption is certainly a disruption to the copper supply, the larger impact will come from disruption of deliveries from the mines, and from the disruption of power supplies to the mines. [Why the Copper ETN May Gain Strength.]
Although most of Chile’s production comes from the North, and the quake hit the Central part of the country, the damage to the highways will suspend business as usual, because of the lack of access for transporting fuel and other supplies to mines, explains Reuters on Zambia. [Other Reasons a Copper Rally May Last.]
Fore more stories about copper, visit our copper category.
- iShares MSCI Chile Index (NYSEArca: ECH)
- iPath Dow Jones UBS Copper Tr Sub-Index ETN (NYSEArca: JJC)
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