There are two copper-mine strikes, at Antamina and Grasberg, but the impact on prices may just be negligible, says BMO Capital Markets Research. Through year end, about 84,000 tons of mined copper supply may be removed if no inventories are processed or shipped and the Antamina strike continues through Dec. 31, the bank says. “This 84,000 ton figure is still less than BMO’s 180,000 ton ‘disruption’ estimate for (the fourth quarter), which suggests that another 100,000 of disruptions would have to occur before BMO’s market balance figure would lessen materially,” they say. The rise in copper prices is likely a knee-jerk reaction, although the bank adds copper prices are running below fundamentals. BMO estimates fourth-quarter prices at $3.10 a pound, versus the current December Comex price of $3.0605.
