LME copper rises 1% as Chile strike spreads

Print this page Posted on : 04-23-2008 by recycleinme.com

Copper futures rose more than 1 per cent on the London Metal Exchange on Tuesday, supported by a widening strike at world number one producer Codelco.

Copper for delivery in three months, often seen as a key gauge of real economic, was up $105 at $8,620/8,625 per tonne by 0938 GMT. Copper hit a record high of $8,880 a tonne last week, up 33 per cent in 2008, in part on worries about supply disruptions, and those worries intensified as a strike at state-owned miner Codelco's Andina and Salvador divisions in Chile kept the operations shut for a sixth day.

China imports

China imported 126,421 tonnes of refined copper in March, a drop of 37.7 per cent on the year and 7.5 per cent down on February, customs data showed.

Imports in the first quarter were 390,735 tonnes, 19 per cent off the same period last year.

''This isn't out of line from expectations as Chinese importers are not keen to bring metal in from abroad,'' Ms Judy Zhu, commodity analyst at Standard Chartered Bank, said.

But she said Chinese copper consumption remained strong and would grow 8 per cent in 2008 to 4.97 million tonnes after rising 16 per cent last year.

Tin hovered just below the contract high of $21,945 it hit on Monday, and was quoted at $21,800/21,900 by 0944 GMT. Aluminium was up $10 at $3,050/3,055 per tonne, zinc was up $25 at $2,245/2,255 per tonne, lead was up $10 at $2,780/2,799 per tonne, and nickel was up $200 at 28,650/28,750 per tonne.

Source : Business Line