Copper futures in Shanghai advanced from a three-week low after Chile's Codelco, the world's biggest producer of the metal, said a cave-in had reduced output, stoking concerns about global supply.
The accident at the Chuquicamata mine in July reduced production from July 23 to mid-September by about 15,000 metric tons, the state-owned company said yesterday. Copper prices in Shanghai have gained 60 percent over the past year.
``Codelco's statement was definitely one of the supportive factors investors had been looking for,'' Shen Jianyun, a trading manager at China International Futures (Shanghai) Co., said today.
Copper for delivery in February rose for the first day in three, gaining 260 yuan, or 0.4 percent, to settle at 63,140 yuan ($8,066) a ton on the Shanghai Futures Exchange.
Metal for immediate delivery in Changjiang, Shanghai's biggest spot market, fell as much as 350 yuan, or 0.5 percent, to 65,450 yuan a ton today.
Increases in the prices of other base metals, which also rose in London on supply concerns, helped to support the gain in copper prices, Shen said. This ``probably provides more sustainable support for copper,'' he said.
Nickel, used in stainless steel, rose by 4.5 percent on the London Metal Exchange yesterday to the highest since at least 1987, while aluminum, used in car and plane parts, rose 2.3 percent, to the highest in eight months.
Copper for delivery in three months on the London Metal Exchange traded unchanged at $6,770 at 3:19 p.m. Shanghai time.
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