Copper Rises for a Second Day in London on Mine Supply Concern
Copper gained for a second day in London on concern that a labor dispute at a mine in Chile, the world’s largest producer of the metal used in pipes and wires, may disrupt supply.
A union at the Cerro Colorado copper mine in Chile voted yesterday to strike as part of wage negotiations with BHP Billiton Ltd., the world’s biggest mining company. Supply disruptions last year helped copper futures to rise to a record $8,800 a ton in May. Since then, prices have fallen 35 percent.
“The news of potential supply disruption at Colorado is giving copper some support,” said Peter McKie, a trader at Natexis Commodity Markets Ltd., one of 11 companies trading on the floor of the London Metal Exchange. “It’s probably not a big enough disruption to provide long-term support,” he said in a telephone interview.
Copper for delivery in three months on the LME gained $50, or 0.9 percent, to $5,690 a metric ton as of 9:26 a.m. local time. The metal has slipped 10 percent this month.
Inventories of copper monitored by the LME increased 1,425 tons to 211,825 tons, the exchange said in a daily report.
Also on the LME, aluminum advanced $14 to $2,710, nickel increased $500 to $36,200, tin rose $195 to $12,250 and zinc gained $25 to $3,415. Lead was unchanged.
Source: www.bloomberg.com
