Copper prices have been trending higher on Wednesday, March 17, amid investor fears about a shortage of supplies from Chile. The metal is trading at $9,032/t after three days of heavy selling and could be set for a rebound to $9,170. This would allow copper to break out of the upper bound of the $8,860-9,168 side trend and enter a rising trend.
There is a fundamental reason behind the uptrend: fears are rising that copper supply from Chile will be disrupted. This comes amid ongoing wage negotiations at the Los Pelambres mine in Chile. The company's latest proposal on the structure of contracts with employees did not suit the workers, and the copper mine has not yet returned to work.
Similar complications may arise at other Antofagasta fields, so the risk of a supply disruption is quite significant.