By Kenneth Afor
A multinational conglomerate in Chile, Antofagasta has warned that if industrial unrest persists, global output for copper could further depreciate to about 5,000 tonnes, an equivalent lower than 3 percent of third-quarter of 2019 production.
Chile is the world’s largest producer of copper and with the signs of the unrest, there could be distortion in the commodity’s global market.
Meanwhile, investors in other commodities such as copper witnessed low trading of 0.3 percent at $5,800 tonnes due to rising concerns from Chile, the world’s largest producer of copper threatening to disrupt supply which may weaken global output
Zinc prices on Wednesday gained momentum as supply remained low more than two decades despite expectations of an increase in supply in London Metal Exchange (LME)
Data released by LME saw the commodity benchmark gained 0.3 percent to $2,475 per tonne, the highest since July and further higher since 2016 at $2,190 on September 3.
Market analyst attributed this gain to “the transition to a surplus market keeps being pushed back,” said Wenyu Yao at ING.
Yao added that more supplies will come which will result in lower prices but she clarified that “without a tangible rise in stocks you can’t be convinced there is a surplus”.
However, the stockpile of zinc in most warehouses registered by LME fell to 35,125 tonnes, the lowest since 1998.
According to the International Lead and Zinc Study Group (ILZSG), it said the effect emanated from the 106,000 tonnes shortfall from January to July as against 170,000 tonnes in the first half of 2018.
Meanwhile, Nickel traded 0.5% lower at $16,420 a tonne, down from September’s five-year high of $18,850.
Aluminium traded flat at $1,719.50 a tonne, lead traded 0.1% lower at $2,216 and tin traded down 0.6% at $16,750.
According to the projection by Norsk Hydro, it said that global aluminium demand this year is expected to reduce down from 3.1 percent as of 2018