Copper price climbs amid industry collective bargaining

From the mining sector they are cautious in estimating that the commodity is facing a supercycle.

The price of copper has reacted positively to the period of collective bargaining in the mining industry. The price of the red metal registered a rise of 1.05% on the London Metal Exchange on Tuesday and reached US $ 4.268 a pound, according to Cochilco data.

“There is a lot of interest in the market for the fate of the labor negotiations in Chile and these dates are decisive. This has captured a lot of interest from the actors, ”says the executive director of the consultancy Plusmining, Juan Carlos Guajardo.

Of course, the specialist also attributes the rise in the price of the main national export product to the advance in Congress of the infrastructure plan for US $ 1 trillion (million million) of the president of the United States, Joe Biden.

Meanwhile, yesterday the president of the National Mining Society (Sonami), Diego Hernández, was cautious when pointing out that the trend shown by the price of the metal is a supercycle.

“In this period we have seen a copper price of over US $ 4, which has made some analysts speak of a supercycle, although it must be said, with less and less vehemence,” said the executive.

“Given this scenario, we believe that we must be cautious regarding the future behavior of copper, although we project two or three years with high prices,” he added.

Guajardo agrees with him, who points out that it is difficult for current good values ​​to reach the levels of the super cycle experienced between 2003 and 2011. “We can speak of a good price cycle, but it is very different when compared to what was the super cycle that ended the last decade, ”he explains.

In the framework of the celebration of Miner’s Day, Hernández addressed the moment of the country and its relationship with the activity, as a result of the discussion of the royalty and the new Constitution. On this last point, he pointed out that the sector is available to contribute to the work of the constituents and that they expect “to be heard with the same respect as other actors.”

Source: Diario Financiero