Copper gains as world’s biggest mine preps for strike
Copper prices rose on Friday as a union at the world’s biggest copper mine, Chile’s Escondida, told workers to prepare for a strike that would reduce supply of the metal.
However, prices were still down this week due to concerns that demand in top consumer China, currently grappling with a coronavirus outbreak, will weaken.
Benchmark copper was up 0.8% at $9,566 a tonne at 1033 GMT.
It was down 1.2% from last Friday but has still gained more than 20% so far this year, although it is off a record high of $10,747.50 reached in May.
“Dr Copper is supposed to give a good reading of how the economy is doing, and I think we are in limbo phase right now,” said WisdomTree analyst Nitesh Shah.
“Economic growth is back but there’s some doubt with the Delta variant (of the coronavirus),” he said.
He said the metal used in power and construction would be supported over the longer term by strong demand for infrastructure and underinvestment in new mines.
MARKETS: World stocks dipped and the dollar strengthened, with investors in cautious mood ahead of U.S. payrolls data due later.
STRIKE: More than 2,000 union members at the Escondida mine rejected a contract offer. Local law requires five days of mediation after a contract is rejected, followed by a possible five-day extension if a deal cannot be reached.
GERMANY: German industrial output unexpectedly fell again in June.
CHINA: China’s robust export growth likely moderated in July, a Reuters poll showed. China’s factory activity also expanded in July at the slowest pace in 17 months.
COVID: China reported 124 new confirmed coronavirus cases, the highest daily count in its current outbreak.
DRC: China Molybdenum said it would spend $2.51 billion to roughly double production of copper and cobalt at its Tenke Fungurume mine in the Democratic Republic of Congo.
METALS PRICES: LME aluminum was up 0.6% at $2,602.50 a tonne, zinc fell 0.8% to $3,003, nickel rose 0.2% to $19,505, lead slipped 1.3% to $2,331.50 and tin was 0.1% higher at $34,655.
