Supply fears send copper price peaked

Copper prices peaked again Tuesday on supply concerns following a fall in Chilean production of the metal and on news that Grasberg, the world's second largest copper mine, would not meet its targeted output because of lower ore grades, Financial Times reported Wednesday.

The benchmark three-month copper price peaked at US$4,260 a tonne on the London Metal Exchange, up $36 on the day, and about 35 per cent higher so far this year.

Chile, the world's biggest copper miner, recorded a 6.3 per cent fall in copper output in October compared with the same month last year, according to government statistics. Chilean copper output is down 2.9 per cent in the first 10 months of the year.

Meanwhile, Freeport-McMoRan Copper & Gold said fourth-quarter copper production from the Grasberg mine in Indonesia was five per cent below target.

Copper supply concerns outweighed a fall in copper imports into China, the world's largest consumer of the metal. China imported 55,546 tonnes of copper in October, its lowest import level in 18 months and down from 94,577 tonnes in September.

Chinese copper consumption has risen this year, while demand has fallen in the US, Japan and Europe.(*)