Shanghai copper rose for the sixth straight session on Wednesday, tracking a strike-fuelled resurgence in London futures. Shanghai September copper rose 0.6 percent or 370 yuan to 66,800 yuan ($8,798) a tonne after jumping by its 4 percent daily limit on Tuesday.
Copper for delivery in three months on the London Metal Exchange was up $65 at $7,790 and is around its highest since mid-May. In May 2006, copper hit a record $8,800 a tonne. "The bulk of traders are looking at strikes in Chile and what they mean for metal supply," Gerard Burg, analyst at National Australia Bank said.
"I think $7,800 and $8,000 are realistic targets. There is considerable upside pressure, but whether copper will set a new record peak will depend on how well demand survives at these very high prices."
The looming strike deadline at the Collahuasi mine in Chile, one of the worlds's largest, continued to bolster sentiment. Managers have made no new offer to workers who are threatening to strike over pay and conditions, the union said. If no deal is reached, workers can strike from July 9. Collahuasi produces about 440,000 tonnes per year of copper in cathodes and concentrate.
In a separate strike, subcontract workers at Chile's Codelco said they have agreed to meet with the world's largest copper miner after a week of protests that have cost the state miner some $30 million in damages and lost output.
In Canada, the strike at Strata's 370,000-tonne-per-year CCR refinery in Montreal continues, cutting production and encouraging merchants to ship metal from European warehouses to North America to take advantage of stronger premiums.
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