Economics
Copper Slump Seen Extended as Miners Look to 'Tough It Out'
- State-owned miner is working on another round of cost cuts
- Copper trading below supply and demand balance: Landerretche
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Copper’s worst rout in seven years will be prolonged by the industry’s reluctance to shut major mines, some of which are already unprofitable, according to the world’s top miner.
The price of the metal has tumbled 27 percent this year as investors fret over faltering Chinese demand and a stronger dollar. Yet major copper suppliers are making only marginal cutbacks to satisfy shareholders, while resisting shuttering operations on the belief they can “tough it out,” Codelco Chairman Oscar Landerretche said.