Copper price increases due to the harsh reality of the world’s leading Copper producing country closing its borders.
Week commencing: 05/04/2021 Issue: 1
On Monday 5th April, Copper prices began to rise after investors assessed the decision by Chile to close its borders, due to an increased number of COVID-19 cases. Foreign residents and Chilean citizens are currently banned from entering or leaving the country. To reduce the infection rate, truck drivers are required to present a negative COVID-19 PCR test upon arrival. It has been suggested that the tough restrictions may disrupt mining activities by delaying equipment replacement.
Due to the harsh reality of the world’s leading Copper producing country closing its borders, it is set to have a large impact on the Copper industry. As the supply diminishes, demand continues to increase for modern essentials such as electric cars, solar panels, green technology and data centers which are currently serving many companies who have resulted to working from home. Since the beginning of 2021, the Copper industry has experienced a 10% rise in its price due to the aftermath of businesses being forced to close, as expected, this is due to surge with the result of the Chile borders closing.
Whilst the Copper industry faces an increase in the cost of products and a reduction in the availability of stock, ILF continues to supply customers with the best available supply of Copper. There are some new and exciting developments that will be implemented at ILF in 2021, allowing us to mitigate the rising cost of Copper purchasing in the UK on faster lead times, allowing us to reach out to more customers on a national and international scale.
Have you considered how the current supply disruptions may affect your business?
If you have been impacted, we would love to hear from you and find a solution to your challenges.