Copper prices are skyrocketing, but why?
Just a year after earnings some concessions after a bitter stike, workers are apparently miserable at a key Chilean mine. The biggest union at BHP Billiton’s Escondida mine They are threatening to strike yet again.
Unfortunately, this would interrupt supplies from one of the world’s most incredible copper pits. Copper prices have surged to their highest in more than 4 years, so it’s likely that both sides will come to an agreement.
Look for copper prices to fall sharply if BHP and the union end their dispute over the weekend.
Of note, this quote given to Bloomberg by union spokesman Carlos Allendes: “If I was an investor, I would be betting on this being resolved quickly.”