From Bloomberg Nov 20: “Just when you thought the copper rally is beginning to falter, along comes another labor dispute, with unions at Southern Copper Corp. set to strike in Peru at midnight on Nov. 21. Any disruption could further tighten supply in a market that’s already seen output trail demand in the five months to July. A six-week strike at Chile’s Escondida mine earlier this year helped fuel the deficits.
Southern Copper unions aren’t the only ones unhappy with wages and conditions in Peru, the second-largest producer of the mined metal. The Mining Federation, which represents several unions, is also threatening to go on strike after months of mediation failed to produce positive results. Federation leaders meet on Monday and Tuesday to decide on the next steps.”
And while I can’t recall the source from last week (may have been Bloomberg too), mine supply is also vulnerable to disruption next year with around 40 contract renegotiation agreements due. Biggest potential for more supply disruption is mid 2018 when Escondida comes up for negotiation again with the unions.
AVB Price at posting:
9.4¢ Sentiment: Buy Disclosure: Held
