Copper edges up on mine supply disruption, tight stocks

On Tuesday, copper advanced for the third day in a row, Business Recorder reported, as supply worries kept the metal near its all-time high. The three-month London Metal Exchange contract, the benchmark, traded 0.1% higher at $14,636.50 per metric ton by 0915 GMT, just shy of the record $14,875 set last month.

A landslide prompted Chile's Codelco to partly suspend operations at El Teniente. Elsewhere, talks involving Antofagasta's Centinela mine and two labour groups were scheduled to restart while a walkout went on. Sucden Financial's note argued that tight physical supplies and falling exchange holdings are helping copper hold firm against the dollar's strength more than other metals.

Stocks of LME copper fell by 1,625 tons to 232,275 tons, and the cash contract was priced $181.50 above the three-month forward, pointing to tight near-term supply. Aluminium slipped 0.6% to $3,035.50 per ton, near an eight-month low, with Panmure Liberum linking the drop to eased transit restrictions in the Strait of Hormuz that have let Gulf smelters reconnect with global markets. The bank also noted that disruptions so far equal only 30%-50% of published allowances, so it considers speculative or financial trading the main price driver.