Strike in Peru causes shipment delays to copper concentrate: sources

Singapore — Shipments of copper concentrate were delayed following a nationwide strike by truck drivers in Peru, as miners were not able to transport cargoes from mining sites to loading ports, market sources told S&P Global Platts March 19.

A few smelters surveyed by Platts said that they have not yet received any notice about shipment delay from miners.

"We have been informed by the supplier that loading schedule will be delayed due to the strike," two traders said.

A few Peru-origin mines were impacted by the strike, including Antapaccay and Las Bambas, which produced 185,600 mt and 311,020 mt of copper, respectively, in 2020.

Road blockade by local communities in Peru on March 11 caused operations suspension of Antapaccay mine for a few days, and market sees the current strike as a big blow to the copper concentrate supply.

"I think smelters underestimated impact of the strike. TC for clean copper concentrate may fall to mid-$20s/mt because of shipment delay," a source said.

As smelters operated at low inventory level, some sources expected urgent buying in the market if strike lasts for long.

S&P Global Platts assessed the CIF China Clean Copper Concentrate treatment charge at a nine-year low of $30.90/mt on March 18, down 23% from Feb. 1.