Copper Prices Gain on Strike Prospects

March copper futures rose 1.5 percent to $2.93 per pound on the New York Comex this afternoon, according to Bloomberg. A potential strike at Peru’s Antamina copper mine and signs of strengthening demand in the United States buoyed up prices for the red metal.

Copper for delivery in three months also rose on the London Metal Exchange, gaining 1.2 percent to hit $6,480 per tonne.

As quoted in the publication:

Prices also rose as a decline in the dollar boosted demand for the metal as an alternative investment. The greenback headed for the biggest drop in a month against a basket of 10 currencies.

BHP and Glencore each own 33.75 percent of Antamina, while Teck Resources Ltd. owns 22.5 percent and Mitsubishi Corp. holds 10 percent.

INTL FCStone analyst Edward Meir said:

Strikes are always in general supportive for prices when the news first breaks. If the market senses the strike is sticking because supplies really start actually decreasing and you see pressure on inventories, then it becomes something serious.

Click here to read the full article.