Financial Associated Press (Shanghai editor Xia Junxiong) news, local time on Tuesday, Chile's National Mining Association (SONAMI) chairman Diego Hernández said that he is optimistic that copper prices will remain high in the next 2 to 3 years, but is cautious about the copper price super cycle.
Copper prices have soared to an all-time high this year due to strong market demand, which has also sparked widespread debate among analysts and market observers: How long can the copper bull market last?
Hernández said copper prices will benefit from the electric vehicle revolution and the boom in renewables in the medium term, but in the long run, the market should remain cautious about copper price movements.
It is worth mentioning that the last copper price super cycle began in 2002, China joined the World Trade Organization (WTO) the previous year, the economy began to develop rapidly, which led to a significant increase in demand for copper prices, copper prices reached $9,000 per ton in May 2006.
Against the backdrop of rising copper prices as the COVID-19 pandemic hit the global economy, the Chilean government plans to impose heavy taxes on copper mining, and the tax revenue will be used for post-COVID-19 economic recovery, but this move has been strongly opposed by mining companies. Hernández said it would reduce the competitiveness of Chilean miners and drag down their investment plans.
Hernández said: "We hope that the Senate will remain sane and reach an agreement with us to allow the mining industry to continue to contribute to the economic development of the country." ”
Chile's Escondida Copper Miners' Association, the world's largest copper mine, said Tuesday that it had reached a preliminary agreement with BHP Billiton, where workers would vote on the new contract in two days. Escondida was previously mired in a strike crisis, and after the risk of strikes was reduced, market fears of supply disruptions at the Escondida copper mine eased.