Copper upswings to highest price in two years

BHP’s Oak Dam exploration program has received environmental approval from the South Australian Government.

Copper prices have continued to rise this week to almost $US6800 per tonne ($9345) as global concerns of a lack of supply continue.

The London Metals Exchange listed the red metal at $US6790.50 on September 7, which is the highest price since June 2018.

After an initial COVID-19 influenced slump, copper prices have been on the increase since June when the metal reached $US5700 per tonne thanks to a rebound in demand from the world’s top copper consumer, China.

The metal also reached record levels during July, picking up to $US6362 per tonne as Chinese imports rose to 762,211 tonnes during July, an 81 per cent improvement compared with July 2019.

As Latin American producers like Chile and Peru continue to experience volatility to operations due to the spread of COVID-19, prices are expected to continue in peaks and troughs.

Australian copper producers are enjoying a rise in share prices, reflective of the three-year highs, including OZ Minerals at $14.81 per share on September 8, IGO at $4.54 representing a 1.91 per cent increase while Sandfire Resources rose by 0.83 per cent to settle at $4.85 a share.

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