Copper gained in London after data showed China’s imports rebounded for the first time in three months and as heavy rains in northern Chile spurred concern that supplies from the world’s largest producer may be reduced. Aluminum and zinc also increased. Three-month copper added 0.2 percent to $9,683.5 a metric ton on the London Metal Exchange at 12:30 p.m. Shanghai time. The metal declined as much as 0.4 percent earlier. Copper for September delivery on the Shanghai Futures Exchange closed the morning session 0.2 percent higher at 72,000 yuan ($11,136). “There are some concerns that the weather in Chile may add further pressure to an already tight market,” said Wang Na, an analyst at Guolian Futures Co. “Also, the Chinese import data yesterday were supportive to the price.” Heavy rains will persist in the Antofagasta and Coquimbo regions, and there have been some power outages, said Chile’s national meteorological agency. BHP Billiton Ltd.’s Escondida mine remained suspended because of rain, union president Jose Vidal said July 8, while Anglo American Plc and Xstrata Plc’s Collahuasi said the same day it was “normalizing” operations. Workers at Codelco, the world’s largest copper producer, are scheduled to begin the first companywide strike in 18 years today in protest against planned job cuts as management revamps century-old mines in northern Chile. The strike is set to last 24 hours and will affect all the company’s mines and smelters, Codelco union president Raimundo Espinoza told reporters July 7. Workers will protect the company’s installations during the strike, he said. China Imports Copper imports by China gained 10 percent to 280,009 tons last month from 254,738 tons in May, the General Administration of Customs said on its website yesterday. This was the first increase in three months as buying from overseas became profitable and supply tightened after consumers drained local stockpiles in the world’s largest consumer. Scrap copper imports in June totaled 420,000 tons, up from 400,000 tons in May, customs data showed. Managed-money funds held net-long positions, or wagers on rising prices, totaled 21,901 futures and options contracts as of July 5, more than doubled from 8,893 a week earlier and the highest since April, the U.S. Commodity Futures Trading Commission said on July 8. Aluminum in London was little changed at $2,537 a ton, zinc gained 0.5 percent to $2,368 a ton, and lead fell 0.3 percent to $2,710 a ton. Nickel added 0.3 percent to $23,965 a ton and tin advanced 1.7 percent to $27,250 a ton. To contact the editor responsible for this story: Richard Dobson at rdobson4@bloomberg.net

Source