Copper prices softened only a touch in Asia on Wednesday, largely shrugging off news of a tentative agreement between bankrupt US copper miner Asarco and workers to end a lengthy strike, traders said.
The price of the red metal is still only around two percent off a record of $4,018 hit last month as the fund-dominated market refuses to budge despite the Asarco news, which comes on the tail of China's decision to sell off stocks at home and abroad to rein in prices.
Three-month copper on the London Metal Exchange was trading at $3,940/$3,949 per tonne by 0450 GMT, down a tad from $3,956 at Tuesday's close.
Asarco union and company representatives signed a tentative deal on Monday night and workers could be back on the job by the end of next week after walking out at the firm's Arizona copper mines in early July.
"The significant fact is the strike is over and it's been a four-month strike so it should have impact on the price, but if the funds decide they're buying it today then it's not coming down," a Hong Kong trader said.
Despite tight global supply, which has been exacerbated by historically low LME stocks, analysts and traders say copper has risen too far and is now being supported largely by the funds who are believed to hold large long positions. Shanghai copper futures were mixed, with the most active January contract shedding 10 yuan to trade at 36,650 yuan per tonne.
A stronger US dollar, which usually pressures dollar-denominated base metals, also did little to move prices, with the currency holding near two-year peaks versus the euro and the Japanese.
Breaks through key technical levels sessions is seen buoying the dollar, already supported by widening yeild advantage following successive US rate hikes, to new peaks. By 0454 GMT the dollar was trading at 117.31/35 against the yen and $1.1762/67 against the euro.
In other metals, aluminium was at $2,012/$2,017, against the London close of $2,011, still within striking distance of a new high of $2,040 hit last week, the highest peak since February 1995.
Zinc was steady at $1,576/$1,583, steady with $1,580.
Lead was indicated at $973/$978 against $972, nickel $12,200/$12,300, while tin was at $6,250/$6,325.