There has been little let up in the series of supply problems that have been so important in maintaining the bull run in copper prices. Although the rail workers strike in Chile ultimately came and went in December with no significant impact on the county's copper miners, and Birla Copper's 250,000 tpy smelter is back up and running after November's accident, more problems have arisen in place of these. Most significantly, attention in early January has focused on none other than the world's largest copper producer, Codelco. Some 28,000 contract workers have commenced industrial action, with the company's El Teniente and Andina divisions suffering most disruption. While Codelco has stated that output has not been affected, the threat of tangible production losses is still clearly very real, and in such a tight market it is understandable that those speculative players currently driving prices have preferred to continue favouring long exposure.
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