Prompt Chinese copper futures rose by about 1 percent on Tuesday, tracking a rise in global copper futures that gained on the threat of supply outages. The most-active September contract closed at 32,240 yuan ($3,896) a tonne, up 320 yuan from Monday's close. Trading volume swelled to 130,964 lots from 129,622 lots.
Prices jumped as strikes at Placer Dome's Zaldivar mine in Chile and at mines in Arizona operated by Asarco, a unit of Group Mexico, coincided with low inventories and high copper prices globally.
But Chinese traders said the labour shortages would only have a short-term impact, arguing global availability would rise as buyers resell cargoes to take advantage of high prices. "The strike is a short-term thing.
In the long-term, stocks are more important," a Beijing-based trader said. The recent surge in global copper prices has left importers facing losses if they take delivery. Some have sold back cargoes, traders said, although volumes were unclear.
Spot copper prices in China rose 315 yuan on Tuesday to 34,400-34,550 yuan per tonne. Benchmark London Metal Exchange copper futures traded at $3,247.50 per tonne, up from $3,236 a day. Aluminium futures fell in the domestic market on Tuesday, with the most-active September closing down 130 yuan at 16,310 yuan. Combined volume rose to 11,640 lots from 11,224 lots on Monday.