Codelco Hopes for Cash from Bachelet; China’s Bright Copper Scrap Up

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Codelco is ready for some positivity and is hoping “Chile’s incoming center-left government will give it a fresh cash injection as it struggles to finance ambitious investments, the chief executive officer said in an interview published on Monday,” reports Reuters.

“If president-elect Michelle Bachelet does not grant Codelco extra funding, “the company has two options: reduce its investment plans or change its financing policies,” CEO Thomas Keller told local newspaper El Mercurio.”

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“Bachelet, who takes office on March 11, has promised to finance Codelco but hasn’t specified what type of mechanism she will favor.”

“World No.1 copper producer Codelco hands all its profits back to the state. The government then decides how much to re-allocate to the miner, often creating uncertainty in the run-up to the announcement and at times spurring disagreement over how much is ultimately allocated.”

In metal price news for copper…

The week’s biggest mover on the weekly Copper MMI® was the price of Chinese bright copper scrap, which saw a 3.0 percent increase. This comes on the heels of a 0.6 percent decline the week prior. The price of Chinese copper bar rose 0.6 percent after falling 1.1 percent during the previous week. The cash price of Chinese copper rose 0.6 percent after falling 1.1 percent during the previous week. Prices for Chinese copper wire remained constant.

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The price of US copper producer grade 122 rose 1.0 percent after falling 1.9 percent during the previous week. The price of US copper producer grade 110 rose 1.0 percent after falling 1.9 percent during the previous week. The price of US copper producer grade 102 rose 0.9 percent after falling 1.9 percent during the previous week. The Japanese copper cash price fell 0.5 percent after rising 1.8 percent the week before. Korean copper strip remained essentially flat from the previous week.

The 3-month price of copper rose 0.9 percent on the LME to $7,327 per metric ton after falling 1.5 percent during the previous week. The cash price of primary copper rose 0.9 percent on the LME to $7,345 per metric ton after falling 1.5 percent during the previous week.

The Copper MMI® collects and weights 12 global copper metal price points to provide a unique view into copper price trends. For more information on the Copper MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.