rebounding nicely, page-11

Copper Summary for 31st July

Copper’s rise was linked to the weaker dollar by analysts, who speculate that those holding stronger currencies will be encouraged to make purchases.

Also of impact were falling copper inventories. Stockpiles in warehouses monitored by the London Metal Exchange fell 1,000 metric tons, or 1 percent, to 101,800 tons. That brings the decline for the year to 44%.

With low stocks, the global market is “extremely tight,” according to Jose Chirinos, chief financial officer at Southern Copper Corp., the world's fifth-largest producer of the metal. And supplies aren't rising as quickly as expected, Chirinos noted.

Copper advanced despite some lessening of supply fears. Chile's state-owned Codelco, the world's biggest producer of the metal, said yesterday that it would resume production immediately at its second-largest mine, El Teniente. Mining had been halted for the previous four days because of protests by striking contract workers.

Still, work stoppages continue at other mines. “With production lagging behind demand, the backdrop of labor unrest in major producing countries creates some unease,” said Eric Wittenauer, an industrial-metals analyst at A.G. Edwards in St. Louis.