02 AUGUST 2011commodityonline.com
Barclays: Collahuasi copper mine workers strike for 24 hours over pay
Edited by : AL CIRCLE
1 min read
The metals closed lower on Friday but have been boosted this morning by news over the weekend that the US has come to an agreement on the national debt limit. Copper is trading at $9,870/t with support from the ongoing strike at the world’s largest copper mine, Escondida.
This follows a 32-day strike at the mine six months ago, which was the longest labour strike at a private Chilean mine. SHFE Aluminium prices have continued to strengthen and the cash to six-month time spread move further into backwardation as domestic market conditions tighten on falling inventories and strong demand.
SHFE inventories have more than halved since the beginning of the year and demand has been boosted by strong growth in the packaging and transportation sectors, while construction demand has also been strengthening recently. Closures of secondary aluminium production because of power shortages have exacerbated the supply tightness.
Furthermore, the government has been more assertively clamping down on smelter expansions with recent inspections resulting in the suspension of 23 proposed aluminium smelter projects.
This follows a 32-day strike at the mine six months ago, which was the longest labour strike at a private Chilean mine. SHFE Aluminium prices have continued to strengthen and the cash to six-month time spread move further into backwardation as domestic market conditions tighten on falling inventories and strong demand.
SHFE inventories have more than halved since the beginning of the year and demand has been boosted by strong growth in the packaging and transportation sectors, while construction demand has also been strengthening recently. Closures of secondary aluminium production because of power shortages have exacerbated the supply tightness.
Furthermore, the government has been more assertively clamping down on smelter expansions with recent inspections resulting in the suspension of 23 proposed aluminium smelter projects.
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