SHANGHAI, Mar. 1 (SMM) -- On Friday, the US government announced that its economy grew at 5.9% annual rate in 4Q of 2009, the highest level over the past 6 years. The positive data pushed up copper prices, and the US dollar index fell back to 80.3. LME copper prices closed at USD 7,225/mt, up USD 155/mt.
Early Saturday (February 27), a 8.8-magnitude earthquake struck in Chile, with some aftershocks, exerting great negative impact on transportation, electricity, production and people's lives across the country. Although Santiago Gonzalez, Chilean Mining Minister said production at copper mines which were affected by the strong earthquake will resume production in the near future, market players believe exports of refined copper and copper concentrate from Chile will be affected if issues of transportation and electricity remain unsolved. In this context, copper prices will experience evident increases, and LME copper prices will likely rise above USD 7,800/mt, setting a new high.
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