US MIDDAY: copper up near record

Copper prices climbed back towards record highs on Monday, after renewed supply threats in top producer Chile provided an additional underpinning to the red metal's demand-driven rally this year.
For a second-straight session, copper prices managed to push higher in the face of a stronger dollar and persistent concerns over European debt, after the closure of a major port terminal in Chile, the world's top copper producer, reinforced widespread market expectations for tighter supply in 2011.
"Up until now, it was basically demand that was driving prices higher, but for the first time in months supply has become an issue again," said Adam Sarhan, chief executive of Sarhan Capital in New York. On the New York Mercantile Exchange, COMEX copper for March delivery rose 4.70 cents, or 1.1 percent, to settle at $4.2060 per lb, near the upper end of its $4.1605 to $4.2235 session range.
COMEX copper hit a record at $4.2290 per lb last week. Copper prices bounced on news that an accident at the Patache port in Chile over the weekend led to the collapse of a ship loading facility used to ship concentrates from the Collahuasi mine. As a result, Collahuasi declared force majeure on copper concentrate sales. Collahuasi is the world's No 3 copper mine, producing some 535,000 tonnes a year, or 3.3 percent of global mined copper.
Investors remained confident Chinese demand would remain strong, despite recent concerns that potential further monetary tightening in the world's top consumer of base metals could hit the country's demand. The premium for cash lead climbed to the highest level since April 2009 against the three-month contract, helping to attract material into warehouses. Lead stocks rose 150 tonnes to 207,750 tonnes, near 10-1/2-year peaks.
Cold snaps tend to damage batteries, boosting replacement demand. Lead finished up $20 at $2,440 a tonne. Aluminium ended up $43 at $2,378 a tonne and zinc gained $15 to close at $2,289 a tonne. Tin rose $140 to close at $26,190 a tonne, while nickel shed $450 to end at $24,550 a tonne.