Bloomberg News

Copper Gains From One-Month Low on Easing Debt Concern, Strikes

September 15, 2011

Sept. 15 (Bloomberg) -- Copper rebounded after German and French leaders expressed support for Greece remaining in the euro area and labor disputes at copper mines in Indonesia and Peru spurred concern supplies may tighten. Zinc and lead gained.

Three-month copper on the London Metal Exchange climbed as much as 1.1 percent to $8,727 per metric ton and traded at $8,641.50 by 4:16 p.m. in Tokyo. The metal touched $8,590 yesterday, the lowest price since Aug. 11.

Angela Merkel and Nicolas Sarkozy, the leaders of Europe’s two biggest economies, issued a statement yesterday after they spoke with Greek Prime Minister George Papandreou by phone. Papandreou committed to meet deficit-reduction targets demanded as a condition for an international bailout, it said.

“All markets were under the influence of Europe’s sovereign-debt crisis, and today we saw some optimism from the overnight news,” said Hwang Il Doo, a senior trader at Korea Exchange Bank Futures Co. in Seoul. Labor action in Indonesia and Peru also supported the market, he said.

China is willing to buy the bonds of nations hit by the debt crisis, Caijing reported on its website yesterday, citing Zhang Xiaoqiang, a vice chairman of the National Development and Reform Commission.

Asian stocks advanced today, lifting the region’s benchmark index from a one-year low. Still, U.S. data today may show industrial production stalled in August, according to a survey of economists by Bloomberg News.

Mine Strikes

Workers at Freeport-McMoRan Copper & Gold Inc.’s Peruvian unit failed to reach a wage agreement and will continue a strike that began yesterday, a union official said. Workers and officials at Freeport’s Sociedad Minera Cerro Verde SAA unit, Peru’s third-largest producer, are scheduled to resume talks today, Mining Federation General Secretary Luis Castillo said.

In Indonesia, about 8,000 non-staff workers at Freeport’s Grasberg mine started a one-month strike, Virgo Solossa, head of organizational affairs at a labor union, said yesterday.

Copper for November delivery on the Shanghai Futures Exchange closed little changed at 65,080 yuan ($10,189) per ton.

Zinc rose 0.5 percent to $2,171.75 per ton in London and lead advanced 0.2 percent to $2,347.75 per ton. Aluminum gained 0.2 percent to $2,363.25 per ton and nickel dropped 0.2 percent to $21,325 a ton. Tin was also little changed at $23,430 per ton after rising as much as 1.3 percent earlier.

--With assistance from Sungwoo Park in Tokyo. Editors: Richard Dobson, Thomas Kutty Abraham

To contact Bloomberg News staff for this story: Jae Hur in Singapore at jhur1@bloomberg.net

To contact the editor responsible for this story: Richard Dobson at rdobson4@bloomberg.net


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