Base Metals Weekly Round-Up: Chilean Copper Output Takes a Hit

Copper appears to be holding its eight month high as of this week, with the red metal maintaining prices above US$6,155 a metric ton on the London Metal Exchange.

In news around the world, the world’s premier copper-producing jurisdiction, Chile, reported a 7.1 percent decline in mining activity in November as a result of nation-wide disruptions due to rioting and protests against the government and social stratification. 

While no mines have been reported as being directly affected, supply chains have been disrupted by roadblocks and worker strikes.

According to government data, Chile produced 504,366 metric tons of copper in November — a decline of 6.7 percent over November 2018.

An interim trade deal between the US and China also appears to be making the vital base metal’s outlook shine, with Bloomberg reporting that miners look set to benefit the most as consumer demand rises.

Meanwhile in the US, Excelsior Mining (TSX:MIN) reported that it has commenced mining operations at its Gunnison copper property in Arizona, which is projected to produce 2.2 billion pounds of copper cathode over a 24 year mine life.

In other metals around the world, zinc was in for a little bit of a bump in the week that began 2020, falling from US$2,314 a metric ton to US$2,292 in the days before Wednesday (January 1), then rising on Thursday (January 2) to reach US$2,297.

Nickel saw a similar journey, hitting US$14,070 a metric ton on Thursday after trading at US$14,220 on Monday (December 30). 

Lead, on the other hand, has seemingly begun 2020 in a mild free fall, dropping to US$1,903.50 a metric ton after trading at US$1,930 on Monday.

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Securities Disclosure: I, Scott Tibballs, hold no direct investment interest in any company mentioned in this article.