Copper prices fell on Wednesday as worries about supply disruptions at the world’s biggest copper mine, Escondida, eased after a deal reduced risk of a labour strike.
BHP Group Ltd and the union at its Escondida copper mine in Chile said they had reached a tentative deal for a new contract, although the union will take two more days to submit the new contract to a vote by workers.
Three-month copper on the London Metal Exchange eased 0.4% to $9,485.50 a tonne by 0316 GMT, while the most-traded September copper contract on the Shanghai Futures Exchange tracked overnight gains in London to rise 0.8% to 69,810 yuan ($10,770.82) a tonne.
FUNDAMENTALS
* Chilean miners expect copper prices to stay high for two to three years but remain wary of labelling the boom a “supercycle” like what happened a decade ago, a senior executive said.
* Phillips 66, the fourth largest U.S. oil refiner, is weighing a broader move into developing battery components for electric vehicles and storage systems, according to top executives.
* LME lead inventories MPBSTX-TOTAL fell to 58,325 tonnes, their lowest since July 2019, while ShFE lead stockpiles PB-STX-SGH hit a record 181,391 tonnes by the end of last week.
* LME nickel fell 1% to $18,765 a tonne, aluminium advanced 0.5% to $2,588 a tonne, while ShFE aluminium rose 1.4% to 20,140 yuan a tonne and tin climbed 2.4% to 238,310 yuan a tonne.
MARKETS NEWS
* The dollar and U.S. yields extended gains in Asia, spurred by tapering talk, while Asian shares traded sideways on fears about the spread of the coronavirus despite a record close on Wall Street.
Source: Reuters (Reporting by Mai Nguyen in Hanoi; editing by Uttaresh.V)