Copper price close to the highs over 2 years ago

Copper prices are rising on exchanges around the world. The reasons are the problems in the mines in Chile, as well as the growing chances of an agreement on real aid for the US economy. The price of copper is rising dynamically and is currently approaching USD 7000 per ton.

Copper quotations on LME in London are now close to exceeding the highest levels in two years for longer. It is similar at Comex in New York. As usual, the politics in the USA helps. Democrats and Republicans are close to agreeing on a joint plan for the economy, which will be quite a substantial package of development stimuli. There have even been talks between US Treasury Secretary Steven Mnuchin and Nancy Pelosi, the president of the House of Representatives, which ended very positively. Politicians unanimously announced that the package for the economy is to be ready this week. Thanks to this, it will be possible to adopt it before the presidential elections, which are planned for November 3, 2020.

Check it out: How to invest in copper? [Guide]

A miners' strike in Chile raises copper prices

Good news from the US, however, is not all the information that has an impact on the copper price in the markets. A stronger economy of the strongest country in the world is undoubtedly a greater demand for the raw material, but the price is also influenced by supply. And this has shrunk recently.

"There is positive news on the markets regarding" stimulus "talks in the US, and strikes are underway in copper mines in Chile" - we read in the Jinrui Futures Co. analysts report.

There is a strike in Chile, which reduces copper mining. Workers are fighting for higher wages at Lundin Mining Corp., which has just suspended its Candelaria mine. The stalemate continues because the miners have rejected the recent proposals for small increases presented to them by the company's management.

All this immediately translated into copper prices, which on the LME increased by USD 120 to USD 6 per ton in one day, reaching an intraday price of USD 899,00 per ton, which was the highest price for this raw material in 6 years. . Analysts point out that copper prices may continue to rise, especially as concrete information about the coronavirus vaccine becomes available.

Copper price chart, D1 interval. Source: xNUMX XTB.