Copper above $8,000

Copper prices rose and held above $8,000 a tonne on Thursday, supported by Chinese buying as supply concerns persisted, despite the possibility that a striking union at the world's largest mine may resume wage talks later in the day.
Key Shanghai copper futures jumped about 4 percent from the previous close, tracking gains in prices of London Metal Exchange on Wednesday. The union at Chile's Escondida mine may resume wage talks with the company on Thursday after calling off meeting with mine owner BHP Billion.
Union President Luis Trounces told Reuters on Wednesday evening he had been in contact with BHP Billion after talks scheduled for Wednesday afternoon were cancelled.
Copper prices had risen in European and US trading the previous day, when the union called off talks with the company on Wednesday and pledged to stay away unless the company tabled a new offer.
Key LME copper for delivery in three months was quoted at $8,060/8,110, up about 0.4 percent from Wednesday's London kerb close of $8,030. "It was important that copper finished above $8,000 last night, but copper looks a bit overbought now so it may take a while before it can rise sharply from here," said Tetsu Emory, chief strategist at Mitsui Bussan Futures in Tokyo.
"As long as the strike is on, copper prices will be supported," Emory said.
"The factor of Escondida was widely expected, but we are all focusing on when the strike would end." Technical trends were bullish, with the three-month LME contract more than 2 percent above the key trend line at $7,873, which is the seven-day moving average.
Chart watchers said the key contract could rise towards the next key resistance around $8,200 a high hit in mid-July. Firm Shanghai prices provided support to LME prices. Shanghai's most heavily traded October copper contract was at 70,020 yuan ($8,781) a tonne, up 3.9 percent from the previous close of 67,390 yuan.
It traded between 69,250 and to 70,250 yuan. "Investors in Shanghai are encouraged to buy the metal after London copper regained $8,000 a tonnes as a result of greater concerns over supply," said CIA Luoyi, an analyst at Shanghai-based China International Futures Co Ltd.