Copper prices furthered the gaining momentum on Monday amid expectations of a potential supply disruption from top producer Chile after reports that the labor union at Collahuasi, the world’s No 3 copper-mine, may stage a one-day stoppage on September 2. However, the upside chances for the red metal prices were limited by the lingering worries over global economic slowdown, which could adversely impact the commodity’s demand prospects. Copper for three-month delivery on the London Metal Exchange gained or 0.3% to $8,848 a tonne.
A session after the free fall, Copper prices recovered some lost ground on last trading session of the week after investors resorted to some short covering on expectations that top consumer China may take advantage of the prevailing lower prices and rebuild stockpiles amid speculations of supply constraints. The depreciation in American greenback against a basket of currencies also underpinned hefty buying in the red metal futures which pulled the prices above the $4 per lb levels, as it made the dollar denominated commodity move lucrative for holders of other currencies.

Copper prices got butchered by over one and half a percent on Thursday amid escalating jitters over global economic growth prospects and Europe’s financial stability which dissuaded investors and triggered risk aversion from asset classes like commodities and equities. A flurry of tumultuous economic reports from the US showing a rise in inflation in July, manufacturing sharply weakened in the Mid-Atlantic States, housing sales fell and jobless benefit claims rose, exacerbated investors’ worries amid the crisis of confidence and dragged the red metal prices below the psychological $4 a pound mark.