Metals - Copper higher; lifts other base metals

Tue, Jul 1 2008, 09:29 GMT
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LONDON (Thomson Financial) - Dollar weakness, high oil prices, increased fund money into commodities and some threat to supply lifted copper prices, with most base metals following suit.

The red metal traded just 3 percent below a record $8,880, higher and in line with other commodities such as gold and oil, which rose in part because of dollar weakness.

Meanwhile, players started the second half of the year favouring commodities as opposed to equity markets which are often seen as a riskier bet.

Elsewhere, copper is fundamentally supported on mining strikes in Peru, the world's second-largest copper and zinc miner, and in Mexico, also a large metals supplier.

In Peru, workers at several big mines and smelters, including the Ilo smelter and Cuajone mine owned by Southern Copper, and the Antamina zinc and copper mine owned by BHP Billiton and Xstrata, went on strike on Monday for better labour benefits. But company officials said production was barely affected and temporary workers were being used.

Mexican miners are striking in response to the government's refusal to recognise the re-election of Napoleon Gomez Urrutia as union secretary general. The union has approved further strike action for later in the year.

At 10:01 a.m., London Metal Exchange (LME) copper for three-month delivery was at $8,605 per tonne, up from $8,510 at the close on Tuesday.

In other metals traded on the LME, three-month tin was unchanged at $23,450 per tonne. Lead for delivery in three months jumped to $1,805 per tonne from $1,790, while aluminium was higher at $3,159 from $3,114. Nickel rose to $22,190 per tonne, basis three months, from $21,950, while zinc was higher at $1,943 from $1,932.

anealla.safdar@thomsonreuters.com