, Columnist
Copper's Price Surge Won't End Soon
A strike at the world's biggest mine and Trump's infrastructure plans are feeding demand.
On strike.
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When copper traders hear of an impending mining strike they typically "buy the rumor and sell the fact." They get in the market and get out, knowing that strikes are often expected in any given year and typically settled, at which point prices and volatility fall back to pre-strike levels.
This was the case leading up to Feb. 9 when miners at Escondida Chile, the world's largest copper producer, voted to strike after contractual wage talks failed to end in agreement. BHP Billiton Ltd., which holds a 57 percent stake in the mine, decided to stop production and swiftly declared a case of force majeure. That pushed copper to a 20-month high; and there could be room on the upside.