Reuters reported today that Chile’s Codelco could cancel as much as 10,000 tonnes of its term copper shipments to China, which could pressure China to buy copper elsewhere. According to Reuters, and unnamed source stated that Codelco has already cancelled 7,000 tonnes of shipments so far, and BHP Billiton (NYSE:BHP) has also asked to delay some of its term copper shipments to China.
As quoted in the publication:
The shortfall is likely to push Chinese importers to buy spot refined copper from the international market, underpinning global prices that have already risen more than 10 percent from this year’s low in March. Codelco, the world’s top producer of copper, is likely to cancel a total of around 10,000 tonnes of refined copper due to continued problems at its new Ministro Hales mine, said a source who is familiar with Codelco’s operations.