SG:Copper climbs first day in three on supply concerns as weak dollar
Bloomberg reported that copper rose for the first time in three days amid growing concerns that a shutdown of the world’s second biggest mine will curb supplies and a weakening dollar may boost the appeal of metals as an alternative investment.
Copper for delivery in three months gained as much as 0.6 percent to USD 7,376 per tonne on the London Metal Exchange and was at USD 7,351.50 in Seoul. Futures for delivery in July gained 0.2% to USD 3.3265 a pound on the Comex in New York.
Freeport McMoRan Copper & Gold Inc’s operations at the Grasberg mine in Indonesia will stay shut until an independent probe concludes, a government official said last week. The government said the investigation may take as long as three months. The Dollar Index, a gauge to measure the greenback’s value against 6 major currencies slipped by the most since March 2009.
Mr Will Yun a commodities analyst at Hyundai Futures Corporation said that “Concerns about curbed supply from the Grasberg mine remain at a time when we see some signs of recovering demand in China. Copper premiums in China are rising, meaning demand there is solid.”
