Copper Update

Copper prices have more than doubled this year, fuelled by record Chinese imports during the first half, fund buying and signs the global economy is on the mend.

But prices dropped 5 per cent in September as investors braced for slower Chinese imports and uncertainty over whether restocking in western countries will fill the gap.

In industry news, union workers at Chile's mid-tier Spence copper mine voted to strike on Wednesday, rejecting BHP Billiton's collective contract offer and setting a worrying precedent for key labour talks in the world's top producer.
“We're bullish for next year on most commodities because demand is picking up and for some supply growth is limited, for copper in particular,” said Mr. Dannesboe.

Investors are eyeing a slew of upcoming U.S. data including Thursday's ISM manufacturing figures and non-farm payrolls on Friday for clues on the outlook for demand and metals prices.

Chinese markets are closed from Oct 1-8 for national holidays, with many investors waiting on the sidelines ahead of LME week later this month and the return of the Chinese.