Copper & Chile tax changes
Hi, How do you think the changes in Chile around taxing Copper will impact the Copper market? Are there other commodities that this could impact? Thanks Ian
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Answer
Hi Ian,
In theory, higher taxes in Chile would disincentivize new mine development (creating higher hurdles) and therefore would be a positive for the price of Copper.
In the shorter term, the industrial metal is rallying on simple supply & demand dynamics. MM remains bullish copper although we have been too early in calling a pullback, our position remains we’re positive and looking to buy corrections in line with our reflation outlook.
If the tax works in Copper, other commodities could come into play like Lithium.
