Codelco Ends Copper Strike After Losing Out to BHP in April


A strike at Codelco’s Chuquicamata copper mine has ended after two weeks, S&P Global Platts reports, removing disruptions to the mine which accounted for around 17% of Codelco’s production in 2018. The strike comes amid a broad reversal in fortunes for Chile’s copper mining industry in early 2018.

Panjiva data shows total exports of copper ore and copper cathode fell 8.2% year over year in April after a 2.9% drop in the first quarter. That came after a 15.0% surge in exports to $33.5 billion in 2018. A downturn in copper cathode exports of 10.2% in tonnage terms and 5.1% in price terms in April, alongside an 8.7% slide in copper ore prices per ton were to blame.

CATHODES POWERING DOWN

Chart segments Chilean copper exports by product on a monthly and three-month average basis.
Source: Panjiva

The U.S.-China trade war may be making itself felt in the form of reduced demand for copper cathode from China – which fell 41.8% year over year in April – while exports to the U.S. caught up with a 15.4% increase. It’s unlikely, as flagged in Panjiva’s research of Jun. 27, that the trade war will be resolved in the near-term.


U.S. CATCHING CHINA AS MAIN BUYER OF CHILEAN COPPER

Chart segments Chilean copper cathode exports by destination. Source: Panjiva


The run-up to the strike also likely took its toll on production – Codelco’sexports in April fell 40.9% year over year in April after a 28.5% drop in 1Q. By contrast BHP’s mines at Escondida and Spence saw a 35.4% surge in exports in April after a 68.3% drop in 1Q.

 Access strategic insight into
global supply chain and trade activity.

Request a demo


Request a demo

TRADE WAR FELT IN CHILE

Chart segments Chilean copper cathode exports by shipper for Codelco and BHP
( Escondida and Spence mines) on a monthly and three-month average basis. Source: Panjiva

Date of publication: July 1, 2019

Copyright © 2019 by S&P Global Market Intelligence, a division of S&P Global Inc. All rights reserved. No content may be reproduced or distributed without the prior written permission of S&P Global Market Intelligence or its affiliates. The content is provided on an “as is” basis.
 
Facebook LinkedIn You Tube

Copyright © S&P Global Market Intelligence Inc. All rights reserved.
Privacy Policy | Cookie Notice | Terms of Use | Disclosures | Do Not Sell My Personal Information