Copper Gains as Supply Tightens

By Ed Ballard 

LONDON--Copper prices edged higher Monday, supported by supply disruption and tightening stocks of metal in warehouses.

The London Metal Exchange's three-month copper contract was up 0.2% at $5,925 a metric ton. Most other base metals were in positive territory.

The LME's daily stocks report showed a 30,000-ton reduction in on-warrant stocks held in LME warehouses to 96,225 tons, the lowest level since April 2016.

Workers striking over pay at the Chile's Escondida copper mine, majority-owned by BHP Billiton Ltd., have said they have the funds to remain on strike for over two months, Bloomberg reported.

Meanwhile, Freeport-McMoRan Inc. remains locked in a standoff with the Indonesian government over permission to export copper concentrate produced at the Grasberg mine.

Analysts at Commerzbank said gains were capped by declines across Asian stock markets.

Looking ahead to events that could move base metals markets this week, U.S. durable goods orders for January at 13:30 GMT Monday will shed light on demand for raw materials from the world's largest economy.

Tuesday brings revised U.S. growth figures for the last quarter of 2016. Measures of China's manufacturing and service sector activity are due Wednesday, along with the expiration of the LME's March copper options contract.

Nickel was up 0.6% at $10,950 a ton, aluminum was up 0.5% at $1,893.50 a ton and tin gained 1.4% to $19,425 an ounce. Zinc was down 0.4% at $2,817.50 a ton.

Write to Ed Ballard at [e-mail]

(END) Dow Jones Newswires

February 27, 2017 06:37 ET (11:37 GMT)

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