[SMM brief Review] what is the impact on the supply side of Chile, the number one copper producer, which extends the state of national disaster for another 90 days?

SMM9: Chile will extend its "state of national disaster" for another 90 days from September 15, according to a statement from the Chilean government on Friday.

Chile has declared a "state of national disaster" since mid-March. On September 11, local time, the Ministry of Health of Chile announced that COVID-19 had added 1860 confirmed cases, with a total of 430535 confirmed cases, 69 new deaths, a total of 11850 deaths, a total of 403064 cured cases, and 15621 existing cases, and a total of 2753769 virus nucleic acid tests were carried out.

Number of new cases in Chile

Although the state of emergency in Chile has been repeatedly extended, Chilean copper production was largely unaffected during the year, with Chilean copper production rising 1.86 per cent to 3.3092 million tons from January to July compared with the same period last year. Codelco has previously said that the number of Covid-2019 infections in its mines has been greatly reduced and that copper production is less likely to be disrupted by the epidemic in the future, but the company's current mode of operation to prevent virus infection will continue for a year. Therefore, SMM believes that the extension of the state of emergency in Chile basically has no impact on the production or shipment of copper mines, and that the mining industry as a pillar of the Chilean economy will be effectively guaranteed.

As of Sept. 11, the SMM copper concentrate index was at US $48.43 per tonne, an increase of US $0.15 per tonne from the previous month. Although the supply-side disturbance has subsided recently, the year-end impulse of the smelter, the increase in smelting demand, and the removal of copper concentrate during the year have led to a stalemate in spot prices, which has been maintained for more than a month under TC 50, and there is still resistance to the recovery of TC in the future.

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