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The price of copper has jumped to the highest level in five weeks after the huge earthquake in Chile. Prices on futures of the metal traded on the London Metal Exchange touched $7,600 a tonne, the highest since 20 January. Officials in Chile – the world’s biggest copper miner – have promised to honour its export commitments.

Production at four major mines was suspended – affecting about 20% of the country’s capacity.

‘Short-term panic’

Production at some of the largest mines resumed on Sunday, although Chile’s mining minister said it could take two days for production to resume.

The 8.8 magnitude earthquake has devastated much of the country and has killed more than 700 people. It was so strong that tsunami warnings were issued in Japan.

Over 5,000 lots of copper traded on the LME, more than double the typical volume, during Asian trading hours.

Bonnie Liu, analyst at Macquarie bank in Shanghai, predicted that copper prices could rise to $8,000 a tonne.

“This is going to create some short-term panic in the industry which means the price could remain at a very high level,” Ms Liu said.

Other commodities also increased in price. Crude oil rose as high as $80.62 a barrel.

Shares in copper producers in Japan and Shanghai surged on the increase in prices.

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