METALS-Copper prices climb as Peru disruptions fuel supply concerns
BEIJING, Nov 4 (Reuters) - Copper prices rebounded on
Friday as production disruptions in Peru, the world's
second-largest copper producer, sparked fresh concerns over
supply of the metal against thin inventories.
Three-month copper on the London Metal Exchange was
up 0.5% at $7,597 a tonne, as of 0221 GMT, while the most-traded
December copper contract on the Shanghai Futures Exchange
held its ground at 63,390 yuan ($8,681.18) a tonne.
This reversed a decline from the previous session where
prices of copper, often used as an economic indicator, sagged
after the U.S. Federal Reserve failed to provide a clear signal
for less-aggressive hikes to interest rates as a global slowdown
curbs demand for metals.
The huge Las Bambas copper mine in Peru, owned by Chinese
miner MMG Ltd (MMLTF), has started to reduce operations due to
recent blockades, the mine said in a statement on Thursday.
Las Bambas, whose operations have often been disrupted by
protests from neighboring indigenous communities, accounts for
2% of global copper supply.
MMG Ltd (MMLTF) in August lowered its forecast for annual copper
production at Las Bambas to 240,000 tonnes.
Total copper production in Chile, the world's biggest
producer, fell 4.27% in September to 428,300 tonnes, according
to the government body Cochilco.
This came against the backdrop of low inventories in the
market.
Copper stocks in LME warehouse dropped 8,250 tonnes on
Thursday.
Among other metals, SHFE aluminium gained 0.6% to
18,130 yuan a tonne, zinc was up 1.3% at 23,115 yuan a
tonne, while nickel lost 0.8% to 191,100 yuan a tonne.
LME aluminium added 0.2% to $2,268 a tonne, tin
increased 0.2% to $17,800 a tonne and zinc rose
0.7% to $2,738.50 a tonne.
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($1 = 7.3020 Chinese yuan)
(Reporting by Siyi Liu and Dominique Patton; Editing by Sherry
Jacob-Phillips)
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