Copper firms on reduced likelihood of higher US interest rates
CPER•Copper rose 0.8% to $14,365 a metric ton as fading prospects of a US rate hike and possible mine strikes in Chile outweighed pressure from a strong dollar.
1. Copper prices rise
Three-month copper on the London Metal Exchange rose for a second straight session, gaining 0.8% to $14,365 a metric ton. The cash contract traded at a premium of nearly $63 a ton over the three-month forward contract, up from $53.50 on Friday, indicating tighter near-term supply.
2. Rates and supply risks
Weaker-than-expected US jobs data reduced the likelihood of an October rate hike. A strike at Antofagasta’s Centinela mine could begin October 13 if contract talks fail, while supervisors at BHP’s Escondida mine have rejected a contract offer. Traders were awaiting China’s return from a week-long national holiday to gauge fourth-quarter buying interest; Chinese stocks were thin, though domestic demand appeared weak.
