Shanghai - Copper rebounded as torrential rain in Chile closed some of the biggest mines in the world’s largest producer of the metal.
Copper rose as much as 0.5 percent after snapping the longest rally in six weeks on Wednesday. Some of the world’s largest copper mines were forced to shut down as torrential rain in the Atacama Desert of northern Chile closed roads and flooded towns. Codelco, the world’s biggest copper producer, shut all of its Atacama mines including Chuquicamata and Radomiro Tomic, according to the state-owned company.
“Copper supply expectations have been revised again after news that rains in Chile forced mines shut,” said Fang Junfeng, an analyst at Shanghai Cifco Futures Company. “The market is entering a peak consumption season in the northern hemisphere.”
Copper for delivery in three months on the London Metal Exchange was up 0.2 percent at $6,138.50 a metric ton ($2.78 a pound) at 10.53am in Shanghai.
The metal earlier fell as much as 0.3 percent after US durable goods orders unexpectedly fell Wednesday from the world’s second-biggest consumer of the metal. US jobless claims to March 21 fell to 290 000 from 291 000 a week earlier, according to a Bloomberg survey before the data on Thursday.
On the Comex in New York, copper for May delivery gained 0.3 percent at $2.80 a pound, while the metal for June in Shanghai rose 0.5 percent to 43,890 yuan ($7,065) a ton.
On the LME, aluminum and nickel rose while zinc was little changed. Lead fell and tin was unchanged.Bloomberg