Copper rises on supply worries in Chile
Copper prices advanced on Thursday, on supply threats in top producer Chile, while slower pace of earnings in top consumer China’s industrial firms eased concerns of policy tightening.
Three-month copper on the London Metal Exchange CMCU3 rose 0.6% to $10,042 a tonne by 0614 GMT, while the most-traded July copper contract on the Shanghai Futures Exchange SCFcv1 climbed 0.5% to 72,180 yuan ($11,308.16) a tonne.
Supply worries in top producer Chile aided prices after miner BHP Group Ltd BHP.AX said it would take contingency measures after a labour union at its Escondida and Spence mines called for a strike.
“Copper received additional support perhaps due to the risk of strike action at BHP’s mine in Chile,” said ING analysts in a note.
Meanwhile, earnings at China’s industrial firms grew at a slower pace in April, calming worries over policy tightening in the country, while some positive signs on Sino-U.S. relations also boosted sentiment in the Chinese equities markets.
* LME aluminium CMAL3 rose 1.2% to $2,431 a tonne and zinc CMZN3 climbed 1.5% to $3,013 a tonne.
* ShFE aluminium SAFcv1 advanced 1.3% to 18,540 yuan a tonne, nickel SNIcv1 jumped 1.2% to 127,040 yuan a tonne, zinc SZNcv1 increased 1.2% to 22,600 yuan a tonne and tin SSNcv1 was up 1.2% at 199,100 yuan a tonne.
* An earthquake in Goma, a city in the Democratic Republic of Congo near the border with Rwanda, is delaying exports of tin ore from mineral-rich North Kivu province, sources told Reuters.
* China’s banking regulator has asked lenders to stop selling investment products linked to commodities futures to mom-and-pop buyers to curb investment losses amid volatile commodity prices, sources said.
Source: Reuters (Reporting by Mai Nguyen; Editing by Ramakrishnan M. and Uttaresh.V)