Copper hits 10-year peak on supply concerns and inventories

LONDON: Copper prices soared to 10-year highs on Monday as Chile supply concerns, sliding inventories, a weaker dollar and expected strong demand from top consumer China triggered fresh buying.

Benchmark copper on the London Metal Exchange (LME) traded 1.9% up at $9,730 a tonne in official rings. Prices of the industrial metal earlier hit $9,750 a tonne, its highest since August 2011.

“The Chile news helped, but there was already a lot of momentum based on a few things, including stocks and the dollar,” one metals trader said. “Chinese demand moving into the seasonally strong period is another factor.”