Copper prices are expected to open sharply higher on Monday, after the huge earthquake that struck off the coast of Chile on Sunday disrupted transport and power in the country.
Trade in copper begins about midday Australian east coast time on the Shanghai exchange, with some tipping prices to jump steeply due to the impact of the quake.
The earthquake which struck about 115km north-east of the city of Concepcion and 325km south-west of the capital Santiago registered 8.8 on the Richter scale, one of the strongest ever recorded.
"There is likely to be some significant supply disruptions out of there (Chile) which in turn is probably going to boost copper prices when they re-open," IG Markets analyst Ben Potter said.
"Details are still very sketchy, but it seems like the mines themselves aren't too bad, but it is the infrastructure that is going to be the problem," Mr Potter said.
"People know there are going to be shut-downs, but whether it is days or months no-one knows, and the market, when faced with uncertainty like that, is probably going to err on the side of caution and bid up prices," Mr Potter said.
Chile produces about one third of the world's copper supply and is home to the giant Escondida copper and gold mine, which produces about 1.2 million tonnes annually.
Australia's BHP Billiton Ltd owns a 57.5 per cent stake in Escondida, while Rio Tinto Ltd owns 30 per cent of the joint venture.
BHP Billiton Ltd told AAP its operations Chile appear unaffected by the earthquake.
BHP operates an office in Chile's capital Santiago as well as operating the Escondida mine.
"From what we know our operations in Chile don't seem to have been significantly affected," a BHP Billiton spokeswoman said.
"All of our personnel are accounted for safe and well," she said.
AAP
