LONDON: Copper prices rose on Monday on supply fears after a fatal mining collapse in Chile, the world’s biggest producer, but gains were capped by concerns over the global economy.
Three-month copper on the London Metal Exchange added 0.6% to $9,685 a metric ton in official open-outcry trading, building on Friday’s modest gains.
LME copper has rebounded by a fifth since touching its lowest in more than 16 months in April but has retreated from a high of more than $10,000 in early July.
U.S. Comex copper futures edged up 0.1% to $4.44 per lb.
Chilean copper giant Codelco halted mining at its El Teniente mine last week after a tremor and collapse that killed six workers.
The mining minister said on Sunday that officials would determine when it was safe for operations to resume at the mine that last year produced 356,000 tons of copper.
Another potential supply issue emerged in Japan, where Mitsubishi Materials said on Monday that it was considering scaling back copper concentrate processing at its Onahama smelter and refinery.
“That does underpin the price and help offset some of the economic growth concerns after Friday’s jobs report,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
US copper stabilises to retain a premium over global benchmark
U.S. jobs data on Friday was weaker than expected, suggesting a sharp deterioration in labour market conditions.
“It does show a trend that tariffs are having an impact and we’ve probably just seen the tip of the iceberg. That will put the market on the defensive in the short term,” Hansen said.
The most traded copper contract on the Shanghai Futures Exchange gained 0.1% to 78,330 yuan ($10,915.70) a ton.
Among other metals, LME aluminium added 0.1% in official activity to $2,568 a ton, zinc advanced 0.8% to $2,749, nickel rose 0.5% to $15,065, lead was little changed at $1,972 and tin edged up 0.2% to $33,445.
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