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Mining industry

Copper Market Volatility: Global Supply Chain Disruptions and Fluctuations

Strategic Insights

— 3 min read

Copper mining operations at Chile's Collahuasi mine are restricted due to a contract workers' strike, while Vedanta Resources PLC has acquired zinc assets from Anglo American PLC, creating the world's largest zinc and lead producer. Meanwhile, Xstrata Plc has suspended a A$30 million copper exploration program in response to Australia's proposed new tax on resource company profits. Global copper demand remains high, with China importing 436,345 metric tons of copper, copper alloy, and semi-finished products in April. The Congo's 2010 copper output is expected to hit 400,000 metric tons, while Russia exported 119,500 metric tons of copper between January and March 2010, a rise of 6.2% on the year.

Key Takeaways:

  • Copper mining operations at Chile's Collahuasi mine are restricted due to a contract workers' strike, affecting global supply chains.
  • Vedanta Resources PLC has acquired zinc assets from Anglo American PLC, creating the world's largest zinc and lead producer.
  • Xstrata Plc has suspended a A$30 million copper exploration program in response to Australia's proposed new tax on resource company profits.
  • China imported 436,345 metric tons of copper, copper alloy, and semi-finished products in April, a 9.1% increase on year and a 4.4% decrease from March.
  • Congo's 2010 copper output is expected to hit 400,000 metric tons, driven by increased production at several new mining projects.
  • Russia exported 119,500 metric tons of copper between January and March 2010, a 6.2% increase on the year.
  • Goldman Sachs Group Inc. raised its 12-month gold and copper forecasts and sees the recent selloff in commodity markets as a good buying opportunity.
  • Copper prices rallied on the London Metal Exchange following the European Union's EUR750 billion rescue plan.

Statistics:

  • 436,345 metric tons of copper, copper alloy, and semi-finished products imported by China in April.
  • 9.1% increase in China's copper imports on year.
  • 4.4% decrease in China's copper imports from March.
  • 400,000 metric tons of copper output expected in the Congo in 2010.
  • 119,500 metric tons of copper exported by Russia between January and March 2010.
  • 6.2% increase in Russia's copper exports on year.
  • 827,500 metric tons of aluminum exported by Russia between January and March.
  • 51,000 metric tons of nickel exported by Russia in January-March 2010.

Sources:

  • Dow Jones Commodities News via Comtex, "Copper mining operations at Chile's Collahuasi mine remain 'restricted' due to a contract workers strike, a company spokeswoman said Monday."
  • Dow Jones, "Vedanta Resources PLC (VED.LN) Monday said it has acquired the zinc assets of Anglo American PLC (AAL.LN), creating the world's largest zinc and lead producer."
  • Dow Jones, "Xstrata Plc (XTA.LN) said Monday that it has suspended a A$30 million, three-year copper exploration program in Queensland state in response to Australia's proposed new tax on resource company profits."
  • Dow Jones, "China imported 436,345 metric tons of copper, copper alloy and semi-finished products in April, up 9.1% on year but down 4.4% from March, preliminary data provided by the General Administration of Customs showed Monday."
  • Dow Jones, "Congo's 2010 copper output is expected to hit 400,000 metric tons as output rises at several new mining projects, the ministry of mines said Monday."
  • Dow Jones, "MOSCOW (Dow Jones)--Russia exported 119,500 metric tons of copper between January and March 2010, a rise of 6.2% on the year, the federal customs service reported Monday."
  • Dow Jones, "MOSCOW (Dow Jones)--Russian exported 827,500 metric tons of aluminum between January and March, a rise of 2.1% on the year, the federal customs service reported Monday."
  • Dow Jones, "MOSCOW (Dow Jones)--Russia exported in January-March 2010 51,000 metric tons of nickel, the same as in January-March 2009, the federal customs service reported Monday."
  • Dow Jones, "LONDON (Dow Jones)--Goldman Sachs Group Inc. (GS) Monday raised its 12-month gold and copper forecasts slightly but marginally cut its nickel outlook, noting the recent selloff in commodity markets is a good buying opportunity."
  • Dow Jones, "NEW YORK (Dow Jones)--Copper futures rallied Monday as investors breathed a sigh of relief after the weekend announcement of a euro-zone bailout package."
  • Dow Jones, "LONDON (Dow Jones)--Base metals on the London Metal Exchange closed sharply higher Monday, following the rebound across financial markets on the European Union's EUR750 billion rescue plan."
  • Dow Jones, "BEIJING (Dow Jones)--Copper futures rallied on the Shanghai Futures Exchange Monday, recouping nearly all their losses from Thursday's near-panic selldown amid more reassuring economic news from external markets."

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