BHP’s Lower Output Forecast Fuels Copper to An 18-month High
Jan, 25th 05:04
Copper prices rose steeply on Tuesday to an 18-month high, with the latest leg up fanned by global production problems at BHP Billiton Ltd.
The world’s largest miner by market value has been facing with a prolonged power blackout at a vast Australian mine which caused BHP’s copper production for the half year to end December to drop 7% to 712,000 tons. In addition, BHP has grappled with threatened strike action by workers in Chile which may trim its output at the Escondida mine.
As a result, the company lowered its full year guidance for this fiscal year given a sharp fall in first-half output. BHP forecast a supply of 1.62 million metric tons of the metal during the year through June, down 2% or 40,000 tons comapred to a prior estimate.
Buy Digital Call Option from 2.7100 to 2.7300 valid until 20:00 GMT January 25, 2017