Copper bears beware as strike risks rise in top producer Chile
Copper forecasters are reassessing their projections as the top-producing country prepares for its busiest year ever for wage talks. Under a new labour code and with higher prices inflating workers’ pay expectations, Chilean mines will negotiate contracts with 32 unions next year. That represents about three-quarters of the country’s copper output, or about one-fifth of world production. Globally, labour negotiations could trigger disruptions at mines producing about 40 percent of supply. That means any disruptions resulting from strikes could quickly tighten up the market -- as happened this year with stoppages at Escondida in Chile and Grasberg in Indonesia. If that happens then we can see sharp upside in prices in near term.
Source: Investing
More will update soon!!!
