Chile mine supports copper; aluminium stocks up

Copper prices rose on Thursday, supported by encouraging economic data from the United States and by supply worries after a force majeure was declared at the world's biggest copper mine, although further gains were capped by uncertainty about the US debt situation. Benchmark copper on the London Metal Exchange ended at $9,815, up from a close of $9,780 on Wednesday.
The metal used in power and construction hit a session high of $9,850 a tonne after data showed pending sales of existing US homes unexpectedly rose in June. Earlier a weaker dollar after better-than-expected weekly US jobless claims helped support copper prices.
Chile's Escondida copper mine, which extracts 7 percent of the world's copper, on Wednesday declared force majeure on copper concentrate sales amid a six-day strike that has hit output. "On one hand copper is under pressure due to the debt limit discussions in the US and a stronger dollar, but on the other hand prices are supported by the strike at Escondida," said Daniel Briesemann, an analyst at Commerzbank said.
Failure to reach accord soon at Escondida could have implications for copper prices, which hit a record high of $10,190 a tonne in February on the prospect of a shortfall this year. Global copper consumption is estimated at around 21 million tonnes this year. Japan's refined copper exports fell 39 percent in June from a year earlier to 27,486 tonnes, for a ninth straight month of year-on-year declines, although the pace slowed from May's 52 percent drop, data showed.
Copper stocks in LME approved warehouses fell 1,450 tonnes to 468,350 tonnes, the latest data showed. Inventories were still more than a third higher than in December. Aluminium stocks, which have been steadily falling since hitting a record high of 4.71 million tonnes in May, rose 92,425 tonnes to 4,461,425 tonnes. Stocks jumped by 100,000 tonnes in the Dutch port of Vlissingen as traders speculated that Glencore had registered material in warehouses there and that more might follow.
Aluminium ended at $2,638 from $2,644 a tonne. China's aluminium prices have risen 4.1 percent so far this week to hit a 15-month high on Thursday due to steady demand and speculation, and this could drive up prices of the metal on the LME, traders and analysts said. Tin, which hovered below a two-month high hit on Wednesday, ended at $28,500 a tonne from $28,745, while zinc, used in galvanising steel ended at $2,519 from $2,521 a tonne. Battery material lead ended at $2,655 from $2,690 a tonne and nickel, which hit its highest since mid-May at $24,690 a tonne, was untraded at the close but bid at $24,550 from $24,395 a tonne.