LONDON- Copper prices bounced on Tuesday as news of disruptions at major mines in Panama and Peru raised supply concerns while demand prospects were buoyed by indications that top metals consumer China will extend economic support measures.
Benchmark copper on the London Metal Exchange (LME) had gained 1.3 percent to $8,476 a metric ton, approaching the two-month peak hit last week.
US Comex copper futures advanced 1.4 percent to $3.81 per lb.
Copper extended gains after news emerged that Panama’s Supreme Court ruled that Canadian miner First Quantum’s contract to operate a lucrative copper mine in Panama is unconstitutional.
Also supporting copper was news that a workers union at Peru’s large Las Bambas mine went on strike for an indefinite period.
“The market is waking up to the concentrate supply problems, which raise questions around the surplus calls for 2024,” said Al Munro at broker Marex.
Also helping to boost the market was news that China’s central bank governor said that monetary policy will remain accommodative to support the economy.
Data showed profits at China’s industrial companies extended gains for a third month in October, albeit at a slower pace, suggesting that more policy support is needed from Beijing. -Reuters
