Copper price jumps as Chile closes its borders

Copper for delivery in May was up 2.96% by midday, with futures at $4.1075 per pound ($9,035 a tonne) on the Comex market in New York.

The world’s top exporter of the metal closed its borders for a month as reported a daily record of 7,830 infections last week, an all-time high for occupied hospital beds, and a nationwide positivity rate of 11%.

Chilean citizens and foreign residents are forbidden from entering or leaving the country. All truck drivers are required to present a negative PCR test carried out in the 72 hours before entering the country.

The stepped-up border restrictions may disrupt mining activities by delaying equipment replacement.

Chile’s copper mines produced 430,100 tonnes in February, a decline of 4.8% compared to the same period of 2020.

Last week, Codelco clinched a deal with workers at its Radomiro Tomic mine after they accepted a new contract offer, defusing worries about a potential strike.