(Bloomberg) -- Copper rose for a second day as traders weighed bearish Chinese economic data against labor disruptions at the world’s biggest mine.
Prices rose by roughly 2% in London, building on Wednesday’s advance. China’s economic malaise extended into the third quarter, while attempts to resolve a conflict between workers and BHP Group at the world’s biggest copper mine, Escondida in Chile, faltered.
“The risk of unplanned disruptions remains high,” ANZ Group Holdings Ltd. analysts including Daniel Hynes said in a note. “Several mines in Chile, representing approximately 900 kilotons of copper or 4% of global supply, have yet to finalize wage discussions,” he said.
The bank sees the market deficit increase in the coming months, balancing out potentially weaker demand.
China’s industrial output rose 5.1% in July, down from June’s 5.3%. Retail sales climbed 2.7%, government data showed on Thursday, broadly in line with forecasts.
The country’s home-price downturn abated in July with new-home prices falling less, as the government’s most forceful effort to revive the market begins to have an effect. The property crisis has been a major drag on metals demand.
Thursday’s data also showed Chinese aluminum output hit a record high for a third month as smelters ramped up production after more power and new capacity came online.
Copper rose 2% to $9,150.50 a ton on the London Metal Exchange at 3:18 p.m. local time. Prices hit $8,714 a ton on Aug. 5, the lowest since March. All metals gained on the LME, with aluminum up 1% to $2,359 and nickel up 0.8%.
--With assistance from Sana Pashankar.
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