Copper Rises for a Third Day in London as Mine Workers Strike
2005-07-06 06:58 (New York)
By Chanyaporn Chanjaroen
July 6 (Bloomberg) -- Copper futures rose for a third
consecutive day in London as strikes continued at mines in Arizona
and Chile, raising speculation among traders that a prolonged halt
in production will worsen a supply shortage.
Asarco Inc., which runs the Arizona-based mines of Grupo
Mexico SA, the world's No. 4 copper producer, suspended talks with
striking workers after it was unable to reach an agreement,
Reuters reported, citing Chief Executive Daniel Tellechea. The
strike at Placer Dome Inc.'s Zaldivar mine in Chile entered a
second day yesterday with no talks between the union and the
company scheduled, according to both parties.
``Some buying interest came amid ongoing strike in the U.S.
and Chile at a time of very low exchange stocks and tight
supplies,'' Robin Bhar, an analyst at Standard Bank London, said
in an e-mailed report yesterday. Standard Bank is a member of the
London Metal Exchange.
Copper for delivery in three months on the exchange rose
$32.50, or 1 percent, to $3,293.5 a ton as of 11:47 a.m. in
London. The contract has gained 4.6 percent this year, after
rising 37 percent last year. Copper stockpiles monitored by the
LME dropped 25 tons to 29,425 tons, still the lowest in 31 years.
The Zaldivar mine will produce 144,000 tons this year, Felipe
Ruiz, a mine spokesman said yesterday. Asarco had planned to
produce 212,000 tons of copper this year. That may decline by as
much as 125,000 tons because of the strikes, Grupo Mexico said.
Nickel Gains
Nickel rose from a five-month low of $14,050 a ton reached
yesterday after a technical indicator some traders use to gauge
trends suggested the price of the metal had declined too far.
The 14-day relative-strength index of nickel for delivery in
three months fell to 30 on June 30 and was at that level or lower
until yesterday. A reading of 30 or less, derived from averaging
gains or losses over 14 days, indicates prices may be poised to
rise.
Nickel gained $200, or 1.4 percent, to $14,475 a ton. The
contract earlier reached $14,570, its highest since July 1.
Among other metals for delivery in three months on the LME,
aluminum rose $14, or 0.8 percent, to $1,719 a ton. Tin climbed
$45, or 0.6 percent, to $7,155 and lead gained $1, or 0.1 percent,
to $858. Zinc was up $13, or 1 percent, to $1,204.
--Editor: Griffiths, Wallace |
