London Metal Exchange (LME) copper ended near record highs on Wednesday on fund buying, although the market struggled near $3,600 a tonne on persistent profit-taking, traders said. "The market was generally quiet today and, as has been the case in recent days, fund buying tried to push prices to $3,600," a trader said.
"We think three months prices needs to take out that level on a closing basis in coming days or buyers may lose their appetite and the sellers will take over."
Three months copper ended at $3,586, just below an earlier record high of $3,588 but up $11 from Tuesday's kerb close.
"Copper is holding up well and the funds seem to be keen to continue accumulating long positions," Basemetals.com's William Adams said in a daily report.
"Although it looks like the metals may still have further to run up, it is rare for prices to run in a straight line for too long, so the market should be wary of set-backs.
"Overall, with the funds as the main buyers the market is becoming increasingly vulnerable to profit-taking and these higher prices are likely to prove enticing to producers."
Barclays Capital said: "The copper price rally is well supported by fundamentals with strong demand, especially from China, in conjunction with the acute supply shortage worsened by strikes."
The key strike issue for the market surrounds US copper miner Asarco, where unionised workers have been on strike in recent weeks.
Talks between union leaders and management have been delayed until August 12, a union official said.
Further supply worries remain over LME stocks, which are around 31-year lows.
On Wednesday world number two mining house Rio Tinto Ltd/Plc. said its first-half profit more than doubled on China-led demand for industrial commodities such as copper and iron ore, sending its shares up 1.5 percent to a record.
Aluminium was at $1,898, up $12, while others were mostly higher.
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