Copper, zinc drop after Peru stir ends

Copper declined in London after the end of a five-day strike by miners in Peru, the world's third largest miner of the metal. Zinc and lead also dropped. Miners ended a national walkout late on May 4 after accepting government proposals to raise pensions and grant rights to subcontracted workers.

Copper futures in London and New York rose to a 11-month high last week on concern the strike would disrupt global supplies. The London Metal Exchange, the largest metals bourse, shut yesterday for a public holiday. "The strike in Peru finished, and had some impact on copper prices,'' said Andrew Silver, a trader at Natixis Commodity Markets, one of 11 companies trading on the floor of the LME. "Volume also dropped today. It can be a sign that the rally has run out of steam." Copper for delivery in three months on the LME dropped $157, or 1.9 per cent, to $8,163 a tonne. It advanced 7.4 per cent last week, and traded at a 11-month high of $8,335 on May 4.

Peru is also the third largest miner of zinc, based on data for 2005. It snapped four days of gains on the LME, falling $90 to $4,080 a tonne.