Copper gains as Chile strike talks delayed, nickel rises

LONDON — Copper rose on Wednesday on upbeat signals for the US economy and as talks to end a major strike in Chile were delayed, while nickel rose on continued supply disruptions in the Philippines.

US President Donald J. Trump repeated his promise of tax cuts, boosting investor risk appetite after robust US data, including retail sales and consumer prices.

The developments came after Federal Reserve Chair Janet Yellen gave an upbeat assessment of the US economy on Tuesday and signaled a faster pace of interest rate rises.

In Chile, renewed talks in Chile to end a week-long strike at Escondida, the world’s biggest copper mine, have been delayed until likely at least Saturday, the union said.

Three- month copper on the London Metal Exchange closed up 0.70% at $ 6,065 a ton, after hitting its highest since May 2015 on Monday following a force majeure was declared on Escondida shipments. The metal fell back on Tuesday however, even as Freeport-McMoRan, Inc. halted production at Grasberg in Indonesia, the world’s second-largest copper mine, as investors took the view supply disruptions had been priced in.

“We expect prices to ease back (this year), there’s too much optimism about (US and China) demand priced in, but a lot depends on the supply front and that’s a bit of an unknown,” said Caroline Bain, senior commodities economist at Capital Economics.

Asia’s copper industry has remained calm over output disruptions in Indonesia and Chile because it is sitting on metal stockpiles that have grown by nearly two- thirds since end-January.

Nickel ended the day 1.40% higher at $10,920, its highest since mid-December, buoyed by supply disruptions in the Philippines, the world’s top nickel exporter.

Philippine President Rodrigo R. Duterte on Wednesday supported his Environment secretary’s decision to cancel nearly a third of contracts for undeveloped mines.

Premiums for nickel in Shanghai bonded zones rose by $15 to $180 this week, the highest since last August.

Zinc closed down 1.10% at $2,870. The global zinc market had a deficit of 286,000 tons last year versus a surplus of 189,000 tons in 2015, industry data showed. Lead ended the day 1.10% lower at $ 2,329. The global lead market had a surplus of 11,000 tons last year from a deficit of 23,000 tons in 2015. Aluminum closed up 1.40% at $ 1,913, having earlier hit its highest since May 2015 at $1,916, while tin ended down 0.20% at $19,880. —