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Written by Mike Buetow
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Tuesday, 25 April 2006 |
LONDON -- Continuing a spike that has lasted more than two years, copper prices hit record levels today, driven by market speculation following a labor dispute at a mine in Chile.
Three-month
copper on the London Metal Exchange hit an all-time high of $7,320 a
metric ton Tuesday. It closed at $7,220 a metric ton, up 6.4% from the day before. Copper also set a in-day record on the New York Mercantile Exchange.
Several factors are playing into the price spikes, analysts say. Among them: geopolitical
jitters, inflation fears, low inventories and momentum of commodities markets.
The latest price surge was prompted by a labor dispute at a major mine. Yesterday, workers at a site in Chile
rejected a final contract offer. Another strike, at a La Caridad, Mexico, mine is ongoing.Copper's demand outlook remains
strong, while ongoing supply disruptions will buoy prices further,
the Associate Press quoted Barclays Capital analyst Ingrid Sternby as saying.
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