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BEIJING — Copper prices rose on Friday, lifted by supply jitters from production disruptions in Peru — the world’s second-largest copper producer — and thin inventories.
Three-month copper on the London Metal Exchange advanced 1.8% to $7,698 a tonne, as of 0527 GMT, while the most-traded December copper contract on the Shanghai Futures Exchange added 0.5% to 63,700 yuan ($8,773.98) tonne.
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The huge Las Bambas copper mine in Peru, owned by Chinese miner MMG Ltd, has started to reduce operations due to recent blockades, the mine said in a statement on Thursday.
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Las Bambas, whose operations have often been disrupted by protests from neighboring indigenous communities, accounts for 2% of global copper supply.
Total copper production in Chile, the world’s biggest producer, fell 4.3% in September to 428,300 tonnes, according to the government body Cochilco.
“The news in Peru certainly added some concerns over copper supply, especially in today’s tight supplied market,” a China-based copper producer said.
Copper stocks in LME warehouse dropped 8,250 tonnes on Thursday to 9,3975 tonnes, the lowest since April.
Among other metals, SHFE aluminum gained 1.1% to 18,210 yuan a tonne, zinc was up 2.5% at 23,380 yuan a tonne, while nickel held at 192,510 yuan a tonne.
However, some caution persisted among investors due to worries about metals’ demand amid recession threats.