Copper markets could get red hot, we noted yesterday.
All thanks to infrastructure plans, renewables, and electric vehicles. In addition, copper prices could push even higher, as a strike in Chile threatens to tighten global supplies.
“Two unions at Codelco’s Andina copper mine in Chile said on Wednesday they would walk off the job in less than 24 hours after rejecting the latest contract offer from the state-owned miner following a five-day period of government-mediated talks,” said Reuters.
“Codelco, the world’s largest copper miner and a major earner for Chile, said it had made the best offer it could,” they added.
At a time when the world must have more copper, this strike could easily create a sizable shortfall, and send prices higher, near-term.
In addition, surging copper prices could lead to higher taxes in Chile.
In fact, according to Bloomberg, “Chile’s lower house approved introducing progressive taxes on copper sales in what could become one of the heaviest levies in global mining, potentially stalling investments and boosting prices.”
As we also noted yesterday, some of the top copper stocks to consider include Freeport McMoRan (FCX), Southern Copper (SCCO), BHP Group (BHP), and Riot Tinto (RIO). You may also want to keep an eye on the Global X Copper Miners ETF (COPX).
The post Chile is About to Spark a Massive Copper Price Rally appeared first on Morningology.
