Chile Earthquake boosts copper prices

Various specialized sites echo the implications of the Chilean earthquake on copper prices

Chile earthquake boosts copper prices
http://www.metalmarkets.org.uk/

by Elaine Frei

Copper prices were up Friday on concerns that a magnitude 4.9 earthquake that hit Chile early this morning.
Chile is the world’s biggest producer of copper, and investors worried that damage from the temblor could hurt supplies.
Gains for the metal used in construction also came after investors took advantage of recent low prices to make purchases.
March copper added 8 cents to $1.47 per pound in New York while three-month copper added $150 to $3,240 per tonne on the London Metal Exchange.
Precious metals prices were up as investors looked for safe places to put their cash as most global equities markets saw more declines during the day.
February gold added $37.50 to $896.30 per troy ounce in New York after heading over the $903 per troy ounce level for a short time in earlier trade.
At the same time, March silver was up 60 cents to $11.96 per troy ounce while April platinum gained $23.10 to $963.50 per troy ounce.

THE ASSOCIATED PRESS February 27, 2010, 4:21PM ET
Copper mines shut in Chile after 8.8 earthquake

By BRADLEY BROOKS

Chilean state copper company Codelco has reportedly shut down two mines due to damage from the massive earthquake.
La Tercera says operations were halted at El Teniente and Andina mines. Chile's main port at Valparaiso is also indefinitely shut down.
The newspaper cites an unnamed company official who says the damage is not major and the mines should be back online within hours.
Operations elsewhere in Chile are normal.
Calls to Codelco were not immediately returned.
The 8.8-magnitude quake struck early Saturday about 265 miles (425 kilometers) from El Teniente and 340 miles (550 kilometers) from Andina.
Chile is the world's No. 1 copper-producing nation, and Codelco the biggest copper-producing company.

Top copper producer Chile hit by 8.8-magnitude earthquake

London, 27 February 2010 - Chile, the world's top copper producer, has been hit by a massive earthquake centered around the southern part of the country.

The quake struck at 0634 GMT about 115km (70 miles) north-east of the city of Concepcion and 325km south-west of the capital, Santiago, killing some 300 people.

Buildings shook and collapsed in Santiago, while Chile’s Radio Cooperativa reported that the quake struck near a copper mining area. Santiago’s airport was closed and its subway shut down. Chile’s main seaport, in Valparaiso, was closed while damage was assessed

The disaster is expected to lead to higher copper prices next week on world financial markets. Copper prices traded last on Friday at $7,195 per tonne on the LME - dealings will re-start early on Monday in China on the SHFE, and are likely to strengthen.

The earthquake tore apart houses, bridges and motorways, and the impact on the country's infrastructure will affect supplies of copper. State-owned producer, Codelco, is the world's number one miner, and produced 1.702 million tonnes of copper in 2009, up 16 percent from 1.466 million in 2008.

Codelco stopped work at two of its mines, but said it expected them to resume operations quickly. Codelco accounted for 33 percent of Chile's copper production in 2009. The country produced 5.389 million tonnes of copper last year compared with 5.328 million in 2008, out of a global level of some 18.3 million tonnes.

Chile's main copper producing region and some of the world's largest copper mines are in the far north of the country near its border with Peru. Escondida, the world's biggest mine which produced some 1.4 million tonnes of copper - owned by BHP Billiton and Rio Tinto - is in the Atacama Desert, 170 km southeast of the port of Antofagasta in northern Chile.

However, there are also major copper deposits near Santiago. The giant El Teniente mine is located 75 km south of the capital. Also, officials said roads to the important Los Bronces mine near the capital were blocked.

Copper Climbs as Earthquake in Chile Triggers Supply Concern

By Millie Munshi

Jan. 23 (Bloomberg) -- Copper prices increased for the first time in four days after an earthquake rattled parts of Chile, the world’s biggest supplier of the metal.
The 4.9-magnitude quake struck about 320 kilometers (200 miles) south of Santiago at 9:56 a.m. local time, the U.S. Geological Survey said. Copper still has plunged 65 percent from a record in May as a global recession curbed demand for the metal used in pipes and wires.
“The earthquake is why copper isn’t down,” said Matthew Zeman, a trader at LaSalle Futures Group in Chicago. “Copper is trying to claw its way uphill. Barring any major supply disruption, it will have a hard time making a big move higher.”
Copper futures for March delivery gained 7.6 cents, or 5.4 percent, to $1.472 a pound on the Comex division of the New York Mercantile Exchange. The price still dropped 3.6 percent this week.
The metal extended gains after President Barack Obama pressed congressional leaders to reach a consensus on an $825 billion stimulus plan in a bid to revive growth.
“There is some optimism and some hope that the stimulus plan will take effect soon and help copper demand,” said Donald Selkin, the chief market strategist at National Securities Corp. in New York.
Demand rebounded after copper earlier touched $1.373, the lowest for a most-active contract since Jan. 2.
‘Just a Bounce’
“Users may be looking to buy at these prices to replenish their supply,” Selkin said. “This is just a bounce within the bearish fundamentals. I don’t see this as the beginning of a bullish move for copper.”
China’s economic slowdown, already the deepest in seven years, is set to worsen, according to economists surveyed by Bloomberg News. The country is the world’s biggest copper buyer.
In the fourth quarter, the U.K. economy had the biggest contraction since 1980, a report showed today. U.S. housing starts in December fell to a record, the government said yesterday.
“All of the negative economic news is not painting a pretty picture on the demand side for copper,” Zeman of LaSalle Futures said. “The outlook doesn’t look too good.”
On the London Metal Exchange, copper for delivery in three months rose $161, or 5.2 percent, to $3,251 a metric ton ($1.47 a pound). The price reached a record $8,940 on July 2.
To contact the reporter on this story: Millie Munshi in New York at mmunshi@bloomberg.net
Last Updated: January 23, 2009 14:15 EST