Disruptions at Codelco Mines due to Weather Conditions Impact Metals Market
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Metals – weather disruptions at Codelco mines
Codelco has halted some copper mining operations in central Chile due to heavy rains experienced last week. Mining activities at the Andina mine are currently suspended, while some operations were also stopped at El Teniente mine. The Los Bronces mine (located near the Andina mine) is also operating at a reduced rate. The copper LME cash/3m spread has moved deeper into backwardation, reaching US$18.74/t on Friday, reflecting concerns over a tighter prompt market.
The latest CFTC data shows that speculators increased their bullish bets in COMEX copper by 16,334 lots over the last reporting week, leaving them with a net long position of 23,258 lots (the highest since the last week of January) as of last Tuesday. The move was predominantly driven by short covering with gross shorts falling by 12,214 lots to 30,914 lots.
