Chilean strike shores up copper market

Print this page Posted on : 04-29-2008 by recycleinme.com

Copper prices rose on Monday as the market focused on a strike in Chile, but analysts said a higher dollar would cap gains ahead of a decision on US interest rates. The industrial metal, widely used in the power and construction industries, was trading around $8,620 a tonne at 0944 GMT on the London Metal Exchange, up from $8,575 at the close on Friday when it fell to a three-week low of $8,370.

A strike at Chile's Codelco enters its 13th day on Monday. ''The strikes are why copper is still trading around $8,500/8,600 a tonne as soon as we hear its over, prices will probably dip,'' said Mr Eugen Weinberg, commodities analyst at Commerzbank.

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Aluminium was trading around $3,000 a tonne, up from $2,995 on Friday. Traders expected prices of the metal used in the power, packaging and transport industries to be supported by rising energy prices in the longer term.

Electricity accounts for one-third of the cost of producing aluminium.

Tin was around $23,900 a tonne from $23,850 a tonne. The metal hit a record high of $24,600 last week on worries about supplies from top producers China and Indonesia. Analysts said talk that prices were too high for some consumers would weigh on tin.

Nickel was trading around $29,325 a tonne from $29,500 a tonne on Friday. ''Nickel prices will be supported by the Vale's announcement on costs,'' Weinberg said.

Zinc was at $2,308 from $2,320 and lead at $2,770 from $2,770.

Source : Business Line