LONDON: Copper prices rose on Monday on supply fears after a fatal mining collapse in Chile, the world’s biggest producer, but gains were capped by concerns over the global economy.
Three-month copper on the London Metal Exchange added 0.7% to $9,695 a metric ton by 1415 GMT, building on Friday’s modest gains. LME copper has rebounded by a fifth since touching its lowest in more than 16 months, in April but has also retreated from a high of more than $10,000 reached in early July.
US Comex copper futures edged up 0.1% to $4.44 per lb.
Chilean copper giant Codelco halted mining at its El Teniente mine last week after a tremor and collapse that killed six workers.
The mining minister said on Sunday that officials would determine when it was safe for operations to resume at the mine, which last year produced 356,000 tons of copper.
Another potential supply issue emerged in Japan, where Mitsubishi Materials said on Monday that it was considering scaling back copper concentrate processing at its Onahama smelter and refinery.
“That does underpin the price and help offset some of the economic growth concerns after Friday’s jobs report,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
US jobs data on Friday was weaker than expected, suggesting a sharp deterioration in labour market conditions.
“It does show a trend that tariffs are having an impact and we’ve probably just seen the tip of the iceberg.
That will put the market on the defensive in the short term,” Hansen said.
The most traded copper contract on the Shanghai Futures Exchange gained 0.1% to 78,330 yuan ($10,915.70) a ton.
Among other metals, LME aluminium shed 0.3% to $2,557.50 a ton, lead slipped 0.3% to $1,965; and tin dropped 0.6% to $33,180 while zinc advanced 0.8% to $2,747.50 and nickel gained 0.9% to $15,125.