Asian Copper Steady, Supply Problems To Cap Losses
London Metal Exchange (LME) three-month copper prices were barely changed in thin Asian trade yesterday, but jitters over supply problems were seen limiting further losses, Far Eastern traders said.
"Copper prices are expected to consolidate at around $2,350 a tonne in the very short term," a trader with LG Futures said.
Three-month copper was traded at $2,363 a tonne at 0500 GMT, up marginally from Tuesday's LME close of $2,362.
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The benchmark cash-to-three months backwardation was at $75/$80 on Tuesday, down from a high of $90 but off the low of $60/$65.
LME broker Macquarie said in its daily report the copper market remained extremely tight despite the drop in cash prices this week.
Macquarie said the strike in northern Chile's Escondida mine and a decision by workers at the Quebrada Blanca mine on the Chilean-Bolivian border to go on strike later on Wednesday weighed on the market.
A drought in central and southern Chile, which may pinch power supplies for copper mines in the country, is also a cause for concern, the report added.