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Chile’s Copper Industry Cautious on Coronavirus Impacts

Metal News - Published on Mon, 10 Feb 2020

Image Source: Copper Coronavirus
The disruption caused by the spread of coronavirus in China will impact Chile in particular as they are heavily exposed to commodity prices and demand for imports from the Asian country. Sources from Chilean state copper miner Codelco told BNamericas that they have not seen any contracts cancelled or shipments delayed yet. The source said “The company continues to monitor what is happening in Chinese ports and has already implemented security measures required by the emergency.”

Copper prices have fallen by over 10% from recent peaks in mid-January, but prices are still likely to see some recovery in the second half of the year, according to Chile's state copper commission Cochilco. S&P Global Ratings said that demand for commodities may be affected for several months, but they see the crisis stabilizing globally in April, allowing demand and prices to rise gradually.

In its last weekly report, Cochilco said that even though short-term expectations on copper price points to a drop, investors will remain cautious until the coronavirus had been brought under control.

On Wednesday, Didier Saint-Georges, managing director of French asset management company Carmignac, said that equity investors should take advantage of any retreat in equity prices to add stocks that are not so vulnerable to the global business cycle and take profits elsewhere in order to play it safe.

Source :

Posted By : Yogender Pancholi on Mon, 10 Feb 2020
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