Copper price recovers after mining companies report a drop in production

Copper prices rebounded on Thursday, following a series of production problems that threaten to cut off supply, including a state of emergency in Peru, the world’s second-largest producer.

Benchmark three-month copper on the London Metal Exchange (LME) rose 0.6% to $10,280 a tonne after two days of losses.

“We’ve seen a number of reports this week from some of the major miners that are struggling with the costs of diesel, steel, inputs in general, making it much more difficult to maintain production,” said Ole Hansen, chief strategy officer. of raw materials at Saxo Bank in Copenhagen.

“If anything, we need an increase in production in the next few years to meet some of the aspirations we have regarding climate and Russian dependency.”he pointed.

Chilean miner Antofagasta reported a 24% drop in copper production in the first quarter on Thursday, while Anglo American reported a 13% decline.

A day earlier, Peru said it would declare a state of emergency near Southern Copper Corp.’s Cuajone mine facility amid growing protests against mining companies, which have paralyzed 20% of national copper production.

A weaker dollar also boosted metals, making dollar-priced ones cheaper for buyers using other currencies.

In other base metals, aluminum on the LME was up 0.2% at $3,275.50 a tonne; nickel gained 0.8% to US$33,775; zinc traded little changed, at US$4,419.50; lead fell 0.5% to US$2,412; and tin fell 0.3% to $42,850.