Copper Prices Rise on Possible Supply Disruption at Codelco By...

Copper Prices Rise on Possible Supply Disruption at Codelco

By Millie Munshi

Jan. 9 (Bloomberg) -- Copper prices rose in New York, erasing earlier losses, after Codelco, the world's biggest producer, said there is a risk of a rockslide at its largest mine.

Codelco, which is owned by the Chilean government, didn't say whether such an accident would reduce production at its Chuquicamata mine in northern Chile, where a cave-in last year cut output. Copper has gained 21 percent in the last year as mine accidents and labor disputes caused supply disruptions.

The ``potential supply impact'' may be bolstering prices, said Donald Selkin, director of equity research at Joseph Steven & Co. in New York. ``It's a temporary relief in a market that is still in a downward trend.''

Copper futures for March delivery gained 1 cent, or 0.4 percent, to $2.538 a pound at 11:58 a.m. on the Comex division of the New York Mercantile Exchange. Earlier, prices fell as much as 1.3 percent to $2.495.

A futures contract is an obligation to buy or sell a commodity at a fixed priced for delivery by a specific date.

On the London Metal Exchange, copper for delivery in three months fell $6 to $5,600 a metric ton at 4:59 p.m. local time. Prices have tumbled 36 percent from a record $8,800 in May.