Source: Forex News
BHP is the second largest mining company in the world after Glencore. The company operates mines in more than 30 countries around the world. Its main products are copper, iron ore, nickel, coal, petroleum, and potash.
Copper is one of the company’s most important commodities and is responsible for the biggest share of the revenues. Its biggest copper mine is the Escondido mine located in Chile. This mine is responsible for more than 5% of all copper produced. Its other copper mining locations are in Australia and Peru.
This year, the price of copper has fallen this year in line with other base metals as traders have feared on the impacts of a trade war and the perceived increased supply. Last week however, the price rose slightly after workers at the Escondido mine voted unanimously to go on strike. More than 80% of them voted to reject a salary increment that the company had made. The company had offered to give them a $40,000 bonus and a 5% salary increase. If the employee goes on strike again, it will likely be longer than the 44-day strike that happened last year. The strike will start officially today.
Last week, following the news of the strike, the price of copper jumped from $2.70 and ended the week at $2.783. Starting from 19th July, the price of copper jumped from $2.67 and reached a high of $2.86 before losing those gains. The current price is in line with the 38.20% Fibonacci Retracement level. It is also in line with the 21-day moving average. As traders pay attention to what is going on at Escondido, the price of copper could rise to test the $2.80 level.
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