Copper rises on weak dollar and China speculation
Copper advanced in Asian trading yesterday after reaching a two-week low on Monday, as a slide in the dollar increased the appeal of raw materials as an alternative investment.
Three-month delivery metal on the London Metal Exchange gained as much as 0.8 per cent to $7,362 a metric tonne, and traded at $7,356 in Shanghai. Prices reached $7,270 on Monday, the lowest level since March 2. The June contract on the Shanghai Futures Exchange increased 0.7 per cent to close at Y58,800 a tonne.
Copper also rose after London exchange-monitored stockpiles decreased to near a two-month low and Codelco said operations were likely affected by the power cuts.
The February 27 earthquake that devastated a swathe of central Chile may mean the power supply remains unreliable for some months, Energy Minister Ricardo Raineri said. Codelco's Teniente and Andina mines are in the region that lost power after a transformer collapsed in a substation at Charrua, 431 kilometres south of Santiago.
Commodity prices slumped earlier after the dollar rebounded to above 80 on an index of six major currencies, and on concern that demand from China may weaken.
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