Changing Copper Situation

Date: 18/8/2011

Supply threats in Latin America lingers on, with workers at the world's No. 4 copper mine, Chile's Collahuasi, threatening a one-day stoppage on Sept. 2.

The top producing copper mines in the world are:

• 1. Escondida, Chile
• 2. Chuquicamata, Chile
• 3. Grasberg, Indonesia
• 4. Collahuasi, Chile
• 5. El Teniente, Chile

With the current financial situation littered with the U.S. long term credit rating and the European Union's debt crisis, the LME copper prices were on the decline to an 8 month low. This has recently changed course due to Chinese spot buying.

But with the continued threat of the global economy it is suggested that future price increases will be limited and stay within $8,600-$9,000 on the LME until there is more confidence in the global economic situation.

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