Copper trimmed a second weekly increase as some investors sold the metal to lock in gains after it rallied to a three-month high yesterday on concern supply disruptions may worsen an expected shortage this year. Three-month copper on the London Metal Exchange fell as much as 0.3 percent to $9,714.25 a metric ton and traded at $9,738.50 by 11:12 a.m. Singapore time. The metal touched $9,758 yesterday, the highest price since April 12, on reports of adverse weather in Chile’s copper-producing northern region and a strike at the Grasberg mine in Indonesia. The slowdown in demand “has been in a way compensated by a slowdown in production also,” said Diego Hernandez, chief executive officer of Codelco, the world’s largest copper producer. “Some mines have problems with trade unions or climate, or ramp ups of new operations have been slower than expected. Overall the balance has not changed.” Mines in Chile including BHP Billiton Ltd.’s Escondida and American Plc and Xstrata Plc’s Collahuasi have been hit by rain and snow storms this week. The world’s largest copper-producing country put emergency workers on alert yesterday as more than 1,000 people evacuated their homes. In Indonesia, Freeport-McMoran Copper & Gold Inc. said that production from its Grasberg mine was disrupted after workers started a seven-day strike on July 4, demanding wage increases. Supply disruptions may exacerbate a shortfall in the metal this year, estimated by the International Copper Study Group to be around 377,000 tons. Copper for September delivery on the Shanghai Futures Exchange rose as much as 1.8 percent to 72,290 yuan ($10,976) a ton, also the highest price since April 12. Metal on the Comex in New York fell 0.3 percent to $4.43 a pound, after gaining 2.5 percent yesterday. ‘Looking Good’ “Fundamentally we’re looking good and the medium-term uptrend remains intact,” Luo Minghui, an analyst at Hongta Futures Co., said from Yunnan. Aluminum and lead in London were little changed at $2,590 a ton and $2,718 a ton respectively. Zinc and nickel were unchanged at $2,412 a ton and $23,900 a ton respectively. Tin was barely changed at $27,560 a ton. To contact the reporter on this story: Glenys Sim in Singapore at gsim4@bloomberg.net To contact the editor responsible for this story: James Poole at jpool4@bloomberg.net

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