Copper prices rallied on Tuesday as miners plan to strike at two of the world’s largest copper mines.
According to Bloomberg, copper for delivery in three months on the London Metal Exchange rose 0.3 percent to $6,746.50 a ton by 3:42 p.m. in Hong Kong, its first monthly increase since July. In New York, the contract for December delivery was up 0.2 percent to $3.0695 a pound. January futures in Shanghai rose 1 percent to close at 47,540 yuan ($7,775) a ton.
The Freeport-McMoRan Inc.’s union announced that the miners at the Grasberg mine in Indonesia plan to start a 30 day strike over rising concerns about worker safety, Bloomberg wrote. Additionally, as the Binary Tribune reported, workers at the largest copper mine in Peru, the Antamina mine owned by BHP Billiton, Glencore Xstrata, Mitsubishi and Teck, will walk out indefinitely as of November 10.
“If it does drag on, then we could see some more sustainable positive moves in the pricing,” said David Lennox, a resource analyst at Fat Prophets in Sydney, about the strikes in an interview with Bloomberg.
As the Binary Tribune also reported, China has also bumped up imports of the red metal as the industrial outlook in the country improves. China is the world’s largest importer of copper.
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