Rising infection rates in South America impact mining sector Both copper and zinc rely heavily on mines in Chile and Peru for ore supplies.
That reality is a fact highlighted in a recent Mining.com report, which warned that mining companies operating in Peru are being forced to keep operations suspended.
In addition, companies are halting new operations as confirmed coronavirus cases in the country surged past 300,000, with several of the new infections happening in the copper sector.
Supply-side concerns have also provided support for lead (often co-mined with zinc). This is despite a massive surge in LME inventory arriving in last July, nearly doubling stock levels to 119,000 metric tons.
Chinese demand rising as supply worries mount Chinese investors, in particular, are seeing a convergence of rising Chinese demand and rising supply-side anxiety.
A simultaneous fall in SHFE inventory and a rise in refined metal imports supports the rapid recovery story in China.
Copper rose above $3 a pound for the first time in more than two years on Wednesday, extending a recent rally driven by steady Chinese demand and disruptions to global supply.
Most actively traded copper futures for delivery in September added 1.6% to $3.0230 a pound, the first time they have eclipsed the closely watched $3 level since June 2018. Many analysts think that $3 copper incentivizes miners to pursue longer-term projects to extract metal. A dearth of investment in new mines due to low prices in recent years is one reason some analysts are bullish on the industrial metal, which is used to manufacture everything from smartphones to homes.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Dontgetconned
5 posts
Posted by Dontgetconned > 2020-08-09 18:50 |
Post removed.Why?