Copper Price Hits Record on Fears of Supply Crunches
T-Commodity, adding prices would keep rising while conflict raged in the Ukraine. Russia isn’t a major copper player, producing about 3.5 percent of the world’s copper. Still, commodities extended their massive rally this week as the war fueled fears of supply crunches. Sanctions on Russian individuals and corporates have prompted many banks, shippers, and other firms to stop working with Russian companies or goods. “This Russia and Ukraine conflict has only fanned the flames of the already stretched base metals markets,” Reuters quoted ING analyst Wenyu Yao: “All energy prices are through the roof and that will add more risk to production in Europe which will provide the catalyst to a rally.” Chile, responsible for more than a quarter of global copper production, recorded its lowest January output since 2011. Chilean copper production is expected to recover to register a similar annual haul as last year, according to the president of the country’s mining society. The world’s biggest supplier saw output slide 7.5 percent from January 2021, with lower ore quality and water scarcity among the reasons.
Reprinted from Mining.com The copper price hit an all-time high March 4 as traders looked to stock up over fears of further supply-chain disruption. Concerns about supply disruption, historically low global stockpiles and rocketing energy costs have lit a fire under base metals, trumping concerns over the longer- term impact of the Ukraine invasion on global growth, rising interest rates in the developed world and a slowing economy in China. Copper for delivery in May rose on the Comex market in New York, touching a high $4.9490 per pound ($10,910 per tonne), more than 3 percent compared to Thursday’s closing. The bellwether metal is up 10 percent since the Russian invasion of Ukraine little over a week ago. Adding to metal supply fears are falling inventories in LME-registered warehouses. Copper stocks, at 69,825 tonnes, are the lowest since 2005. Base metals rallied across the board with the LMEX Index, which tracks six major contracts, surging to a record high. Nickel briefly tradef above $30,000 a tonne for the first time since 2008. “The market is in a panic mode in terms of supply,” said Gianclaudio Torlizzi, a partner at consultants
Arctic engineering and environmental services.
• Geotechnical Site Investigation • Offshore Drilling Specialists • Gravel, Placer Exploration • Large Diameter Bulk Sampling • Grouting, Anchoring & Piling • Wireline Coring NQ3 to PQ3 • Wireline CPT & Vane Testing • In-Situ Testing & Instruments • Heli-portable Drilling Systems • Sonic Capability • 3” to 24” Water Wells • Ground Improvement • Wide Range of Equipment • Highly Experienced Staff Anchorage, Alaska Ph: (907) 522-8263 Fx: (907) 522-8262 HGrey@Foundex.com Abbotsford BC Canada Ph: (604) 594-8333 www.Foundex.com
We help mines thrive.
Victor Ross (907) 352-7809
victor.ross@stantec.com Steve Reidsma, PWS (907) 450-1425 steve.reidsma@stantec.com
TEMSCO
JCM INDUSTRIES High Density Polyethylene Pipe offers countless advantages for Mining and Industrial Applications. Keep Those Advantages Working with JCM Industries Fittings and Fabrications for HDPE Pipe
BUILDING ALASKA ONE OUNCE AT A TIME Our firm understanding of Alaska’s unique challenges and commitment to HSSE and planning have translated into
Sustainable Designs Innovative Thinking Responsible Mining
HELICOPTERS, INC.
satisfied mining clients across the state. We get dirty so you get the pay dirt.
TIMBER EXPLORATION MINING SURVEY CARGO OPERATIONS
wsp.com
Serving all of Alaska since 1958
Arctic Trace ® Submersible Heat Trace Freeze Protection System "Inside the Pipe or Vessel" www.arctictrace.com (907) 522-3004 A pplications: Monitoring Wells Commercial Water Line Deep Well Tracing Gutter & Drain Waste & Vent Septic Tank & Sewer Outfall
REPAIR
CONNECTION
TEMSCO Helicopters, Inc. PO Box 5057, Ketchikan, Alaska 99901 Phone 907-225-5141 Fax 907-225-2340 www.temscoair.com
BRANCHING JCM INDUSTRIES, INC. - NASH, TEXAS, USA 75569-1220 Call Toll Free 1-800-527-8482 or 903-832-2581 www.jcmindustries.com RESTRAINT
Commitment to Safety & Quality | Anchorage · Kenai · Deadhorse www.conamco.com | 907-278-6600
20
March 2022 I The Alaska Miner I www.alaskaminers.org
www.alaskaminers.org I The Alaska Miner I March 2022
21
Made with FlippingBook. PDF to flipbook with ease