(Copper prices story updated with additional comments from analyst.)
NEW YORK ( TheStreet) -- Copper prices may have jumped after a massive earthquake hit top copper-producing country Chile, but investment analysts have reaffirmed their predictions of moderating copper prices in the mid-term. Copper prices earlier shot up by more than 2% on fears of copper supply disruptions in Chile. Such fears are certainly understandable, given that 20% to 25% of Chilean mining capacity was closed immediately after the earthquake, according to Waverly Advisors. But any structural damage that the earthquake might have caused should not be enough to prevent mining operations from resuming production within days, according to Waverly Advisors. Thus, fears of copper supply disruptions and a subsequent spike in copper prices should subside within days. "We anticipate that the supply shock caused by the earthquake in Chile will not be significant enough to change our conviction on mid-term copper prices," Waverly Advisors analyst Andrew Barber notes. "We expect that prices will continue to moderate due to cooling demand (particularly from China)."
It's already been officially confirmed that two of Chile's largest mines, Rio-Tinto-owned Escondida
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