BRIEFS
Strike threat
Copper in New York gained after workers at BHP Billiton's Escondida mine in Chile turned down a wage proposal, threatening a stoppage at the world's largest copper mine. Metal for delivery in March climbed as much as 0.9 per cent to $US3.579 a pound on the Comex, and was at $US3.572 in Shanghai trading. Plant and mine-shift workers "unanimously" rejected the wage proposal at meetings on December 22, the union said on its website. The company can still propose a higher offer before compulsory negotiations are triggered, as the contract expires in July 2013, union official Marcelo Tapia said.
Cai Jie, an analyst at Essence Futures Co said, "Relatively tight global supply and a recovery in the Chinese economy have made me optimistic about copper prices in the first half."
CHINA
Bonds boost
China might allow more types of bonds to be traded on stock exchanges in a bid to boost volumes on the bourses, the Shanghai Securities News reported. Government departments are considering the introduction of depositary receipts to allow debt currently tradeable only on China's interbank market to also be traded on exchanges, according to the report. Such a proposal might need approval from the State Council, China's cabinet, the newspaper reported, without saying where it got the information. China's interbank market had 22.2 trillion yuan ($A3.4 trillion) of outstanding bonds at the end of November, according to ChinaBond, the nation's bond clearinghouse. That compared with 449 billion yuan on stock exchanges, where retail investors are allowed to trade, according to the clearinghouse.
The nation's securities regulator oversees bonds traded on the stock exchange.
Frequently Asked Questions about this Article…
Workers at BHP Billiton's Escondida mine in Chile unanimously rejected a wage proposal at meetings on December 22, creating a threat of a stoppage at the world's largest copper mine. The union said the vote could lead to industrial action unless a higher offer is made before compulsory negotiations begin, which could disrupt production and tighten global copper supply.
Copper prices rose after the wage proposal was turned down. March copper on the Comex climbed as much as 0.9% to US$3.579 a pound, and trading in Shanghai showed a similar level at about US$3.572 a pound, reflecting concerns about potential supply disruption.
Yes. Union official Marcelo Tapia said the company can still propose a higher offer before compulsory negotiations are triggered. The current contract is due to expire in July 2013, so further offers could avert compulsory talks or stoppages.
Analyst Cai Jie of Essence Futures Co said relatively tight global supply combined with a recovery in the Chinese economy makes them optimistic about copper prices in the first half of the year, supporting higher price expectations for investors watching the market.
According to the Shanghai Securities News, government departments are considering allowing more types of bonds to be traded on stock exchanges by introducing depositary receipts. This would let debt that currently trades only on China's interbank market also be traded on exchanges to help boost bourse volumes.
China's interbank market had about 22.2 trillion yuan of outstanding bonds at the end of November, compared with 449 billion yuan of bonds trading on stock exchanges, according to ChinaBond, the nation's bond clearinghouse.
The report said such a proposal might need approval from the State Council, China's cabinet. The article did not provide details on the approval timeline or next steps.
The nation's securities regulator oversees bonds that are traded on the stock exchange, according to the article.
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