Copper prices climbed on Tuesday towards the record above 10,000 a tonne seen a decade ago as worries about supply disruptions in Chile due to strikes and robust demand reinforced expectations of shortages this year.
Benchmark copper on the London Metal Exchange was up 1.5 at 9,901 a tonne at 1110 GMT, a gain of 27 this year. Prices of the metal used in power and construction earlier touched 9,965, close to the alltime high of 10,190 hit in February 2011.
Chilean port workers called a strike over pensionrelated issues. They are being supported by the mining unions. There is no indication of supply disruptions, but copper prices have rallied, said Julius Baer analyst Carsten Menke.
Chinese copper demand is set to fade against the backdrop of unfavourable demographics and the economys transition from investmentdriven to consumptiondriven growth. We do not see the copper market entering a super cycle.
SUPPLY EDF Man Capital Markets analyst Edward Meir said another reason behind copper price strength may be elections in Peru, the worlds no. 2 copper producer, where the presidential frontrunner has proposed nationalising mining.
PHYSICAL The Yangshan copper premium fell to 46.50 a tonne, its lowest since Nov. 17, indicating weakening demand from China, which accounts for about half of global demand estimated at around 24 million tonnes this year.
Surveys of purchasing managers in Chinas manufacturing sector later this week and early next week will be watched closely for…