At least four copper mines and two refineries in Chile were shut down due to the power outage caused by the February 27th earthquake. Chile ranks first in the world in copper production and export. The output of these four copper mines accounts for about 16% of the national total output. But the Minister of Mines, Santiago? Gonzalez said that the suspension of production will not affect exports because there is enough inventory.
Curtis Muborn, emerging market bond fund manager of Pacific Investment Management Company, said: "From the preliminary report, we don't see that the mining industry has been hit hard ... We expect the direct impact of the earthquake on the economy to be limited."
Another domestic analyst pointed out that the earthquake in Chile will further stimulate the rise of international copper prices in the short term, because the reduction of copper raw material supply will reduce the output of copper smelting enterprises, thus reducing market inventory. On the 27th, after the news of the earthquake came out, the copper price in new york futures market rose by 3.2%, and after the news of the power outage of copper mines came out, the copper price in new york futures market soared by 6%, reaching $3.229 per pound.
A related person from China Minmetals, who has long-term cooperation with Chile's national copper company, said that the earthquake caused great damage to Chile's infrastructure, and its copper production and transportation were bound to be affected. It is estimated that there will be fluctuations in the domestic and international futures markets after the opening. For example, many stocks such as Yunnan Copper and Jiangxi Copper are worthy of attention.
The rise of copper price will definitely indirectly affect the investment of enterprises in the copper industry. I believe that more enterprises will introduce some talents from the copper industry to enhance their competitiveness. Strong professional strength, talent is the first productivity of enterprises.