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METALS-Peru strike helps lift copper
March 13, 2017 / 11:09 AM / 6 months ago

METALS-Peru strike helps lift copper

    * Copper recovers from biggest weekly fall since Dec
    * Workers at Peru copper mine began strike on Friday

 (Updates with closing prices)
    By Zandi Shabalala
    LONDON, March 13 (Reuters) - The price of copper rose 1
percent on Monday to its highest level in over two weeks, buoyed
mostly by supply disruptions after workers at Peru's top copper
miner downed tools indefinitely late last week.
    Workers at Freeport-McMoRan's         Cerro Verde         
in Peru started an indefinite strike on Friday that halted
output of about 40,000 tonnes per month.             
    This added to supply disruptions caused by a month-long
stoppage at BHP Billiton's          Escondida mine in Chile and
Freeport's Grasberg mine in Indonesia.
    "Fundamentals are positive for base metals and for copper.
Both if you look at the trend in mining production and the
short-term disruptions adding some support," said Danske
commodities analyst Jens Pedersen.
    However, base metal prices are unlikely to rise much further
ahead of the U.S. Federal Reserve meeting this week, Pedersen
said, as expectations of an interest rate increase will push up
the dollar, making metals more expensive for investors holding
other currencies.
    Three-month copper on the London Metal Exchange        
closed 1.1 percent higher at $5,796 a tonne.
    The contract price fell 3.1 percent last week, the most
since December, partly on a stronger dollar as expectations rose
that the Federal Reserve will announce a rate rise on Wednesday.
    Other commodities also suffered their biggest weekly
declines in months last week after recent rallies showed signs
of petering out, pressured by a glut and tepid demand from top
consumer China.             
    BMI Research said it raised its 2017 copper price forecast
to $5,500 from $5,150 on solid Chinese demand growth and supply
disruption concerns.
    The union at BHP's Escondida mine, the world's largest,
rejected BHP's offer to return to the negotiating table on
Saturday, and called on the company to clarify its negotiating
position.             
    Zinc         jumped 1.6 percent to $2,757 a tonne, its
highest level in a week. Aluminium         gained 0.1 percent to
$1,882 per tonne.
    Nickel         climbed 2.7 percent, its biggest daily jump
in nearly a month, to $10,160 a tonne, after sliding 10 percent
last week.
    Lead         rose 0.5 percent to $2,274, while tin        
traded 0.5 percent higher at $19,450 per tonne.
        
    PRICES    
    Three month LME copper                  
    Most active ShFE copper                  
    Three month LME aluminium               
    Most active ShFE aluminium               
    Three month LME zinc                    
    Most active ShFE zinc                    
    Three month LME lead                    
    Most active ShFE lead                    
    Three month LME nickel                 
    Most active ShFE nickel                   
    Three month LME tin                     
    Most active ShFE tin                             
    

 (Additional reporting by Manolo Serapio Jr.; Editing by Susan
Fenton, Greg Mahlich)
  
 
 

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