Copper Declines After Freeport Workers Cancel StrikeDebarati Roy
Copper futures declined for the second straight day as workers called off a strike at Freeport-McMoRan Inc.’s site in Indonesia, the world’s second-largest mine for the metal.
Employees had planned to stop work at Grasberg for one month starting Nov. 6 over safety issues, helping push copper prices to a five-week high on Oct. 29 as supply concerns mounted. Prices also fell as the dollar rose to the highest since 2010 against a basket of currencies, cutting the appeal of raw materials as alternative investments.
“People are relieved that there will be no strike, so we are seeing some weakness in prices,” Phil Streible, a senior commodity broker at R.J. O’Brien & Associates in Chicago, said in a telephone interview. “Also, the dollar strength is working against commodities.”
Copper futures for December delivery slipped 0.5 percent to settle at $3.047 a pound at 1:11 p.m. on the Comex in New York, the first back-to-back decline since Oct. 16. Yesterday, prices dropped 1.4 percent.
On the LME, copper lost 0.7 percent to $6,695 a metric ton ($3.04 a pound).
BHP Billiton Ltd.’s Escondida in Chile is the biggest copper mine by capacity, according to the International Copper Study Group.
Aluminum, nickel, lead and zinc rose on the LME, while tin fell.
(An earlier version of this story was corrected to reflect the right amount of the scope of BoJ expansion in second paragraph.)