Copper Will Lead Commodity Recovery: Antofagasta

A slide in copper prices has hit miners hard, with Chilean copper miner Antofagasta no exception; on Tuesday, the company reported a 83 percent slide in pre-tax profits for 2015, sending the company’s shares 10 percent lower in opening trade in London.

Along with other commodities, Copper has seen a 15 percent slide over the last 12 months on the back of decreased demand and oversupply.

Asked whether a recovery in copper prices was on the cards this year, Antofagasta’s Chief Executive Diego Hernandez told CNBC that a rebound was not imminent.

“I think probably not this year. I think that this year we will see prices similar to the areas that we have seen since January and why – because supply and demand is tight but we will see a small surplus and with these market conditions any surplus affects the price,” Hernandez said.

CNBC

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Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam