US copper futures ended up on Friday after speeches by Fed Chairman Ben Bernanke and President Bush underpinned a rally on Wall Street, analysts said. In separate speeches on Friday, President George W. Bush and Federal Reserve Chairman Ben Bernanke both said there would be no bailout of speculators and gave no indication an end to mortgage market turmoil was near.
The lack of immediate Fed intervention in Bernanke's speech prompted some red metal investors to pocket some profits following the firmer open, but prices began to muster some late day strength on the back of another rally on Wall Street. US equities surged on Friday after President Bush said he would help struggling subprime mortgage borrowers avoid foreclosure. Copper prices continued to find firm support from ongoing industrial action in Mexico and a potential strike in Peru.
On Wednesday, workers at Southern Copper's Cuajone and Toquepala mines and the Ilo smelter in Peru announced a plan to down their tools on September 12, after rejecting the company's wage offer about two weeks ago. Southern Copper is controlled by Grupo Mexico, which has had its own share of labour problems.
Grupo Mexico, plagued by a month-long strike at its giant Cananea copper pit, urged police this week to reopen the mine. London Metal Exchange copper warehouse stocks rose 500 tonnes at 139,425 tonnes on Friday, while COMEX copper stocks were flat at 20,705 short tons on Thursday. LME copper for delivery in three months settled at $7,460 a tonne, up $60 from Thursday's close.
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