copper shortage means higher prices

Strike season will drag on at copper mines as Chile endures a presidential election

Copper investors need to hold on tight for a wild ride as the Latin American mining labor contract season heats up, complete with Chilean President Michelle Bachelet seeking re-election.
Author: Dorothy Kosich
Posted: Wednesday , 21 Oct 2009

RENO, NV -

As contracts are up for negotiation, the protest and strike season has commenced across South American mines, accompanied by the usual boost in prices for commodities like copper.

To some metals analysts, strikes at Latin American copper mines are a sign of even higher copper prices as the base metal's supplies remain tight.

AND THIS

DJ UPDATE: Copper Market In 71,000-Ton Deficit Jan-Aug -WBMS
LONDON, Oct 21, 2009 (Dow Jones Commodities News via Comtex) --

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The global copper market was in deficit by 71,000 metric tons between January and August, the World Bureau of Metal Statistics said Wednesday.

In the same period of 2008 the market was in surplus by 10,000 tons.

Global consumption in the first eight months of 2009 was 12.26 million tons, which is fractionally higher than the same period last year.

World mine production in the period rose 1.98% on the year to 10.36 million tons and refined production fell 0.4% to 12.2 million tons.

Chinese output rose 99,900 tons, and Bulgarian, Zambian and Chilean output together rose 305,000 tons from the previous year. But output in Japan, Canada and Germany fell by a total 208,000 tons, WBMS said.

Chinese apparent consumption increased to 4.836 million tons from 3.296 million tons in the previous year. However, this increase masks a build up of unreported stocks since the output of semi manufacturers was reported to be only 15.6% higher than last year, WBMS said.

EU27 countries' demand fell 25.9% to 1.948 million tons from January to August 2008 total.

In August 2009, global refined copper production was 1.568 million tons and consumption was 1.455 million tons, WBMS said.

Links:
http://www.individual.com/story.php?story=108766028

http://mineweb.co.za/mineweb/view/mineweb/en/page36?oid=91063&sn=Detail