LONDON: Copper prices retreated on Wednesday, weighed down by dwindling chances of a strike at the world’s biggest copper mine.
Losses were modest, however, after US lawmakers approved a $1 trillion infrastructure spending bill and the dollar weakened.
Three-month copper on the London Metal Exchange had dipped 0.1% to $9,514.50 per tonne by 1600 GMT after gaining 1.6% in the previous session.
“It’s a mixed bag for copper with the infrastructure bill in the US creating a bit of excitement, but at the same time it looks like supply disruption risk in Chile is fading,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
“The market has run out of fuel to keep the rally going, but at the same time the market still believes in the long-term upside potential so that’s keeping selling interest muted.”
Copper has pulled back from a record peak of $10,747.50 touched in May, but is still up 22% so far this year.
Copper pared losses after the dollar reversed and went into negative territory after data showed US consumer price increases slowed in July.
A weaker dollar makes greenback-priced metals cheaper to holders of other currencies.
BHP Group Ltd and the union at its Escondida copper mine, the world’s biggest, said they had reached a tentative deal for a new contract.
LME tin rose 1.6% to a fresh record of $35,630 a tonne while prices on the Shanghai Futures Exchange hit a record 239,870 yuan a tonne on tight supply.
ShFE tin stockpiles fell to their lowest since April 2017 while refined tin output from 20 Chinese smelters plunged 22.7% in July from a month earlier.
Open interest in LME copper has declined to the lowest levels in 14 months, a reflection of lack of direction in the market, Hansen said.
LME aluminium added 0.3% to $2,582.50 a tonne, zinc advanced 1.5% to $3,043.50, lead gained 1.2% to $2,315.50 while nickel climbed 2.1% to $19,350.
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