Copper was steady as a bout of early profit-taking, sparked by the resolution of a number of key strikes, was counterbalanced by a further decline in LME-monitored stockpiles.
At 10.33 am, LME copper for three-month delivery was trading at 8,027 usd, virtually unchanged from 8,025 usd at the close yesterday.
Prices were pressured lower this morning after last night's report from Xstrata that a strike at its CCR refinery in Montreal, which has supported the metal since it was declared on June 11, had been resolved.
Striking workers at the CCR will return to work tomorrow after agreeing to a new labour contract.
The refinery, which has been operating at around a third of its 370,000 tonne capacity since the strike was declared, will be back up to full production within two weeks, according to press reports.
The news sparked a round of profit-taking, analysts said.
'The strike being over offers people an opportunity to take profits,' said Michael Skinner, an analyst at Standard Bank. 'Many will believe, as the strikes are being resolved, that prices have reached the top (of the curve).'
But prices recovered as the LME reported a further fall in stockpiles of the red metal, which remain near historic lows. According to the exchange, copper inventories dipped a further 275 tonnes today to 101,125 tonnes.
'Stocks have posted a modest fall this morning,' noted Martin Hayes, an analyst at BaseMetals.com. 'After yesterday's rise, that is enough to encourage a bit of buying.'
The metal, which has been underpinned by the threat of strikes in the Americas in recent weeks, may be more vulnerable to declines after Southern Copper (nyse: PCU - news - people ) Corp in Peru and Codelco in Chile said they are resolving disuptesat their operations there, analysts said.
Chile's state copper miner Codelco said yesterday it has reached an agreement with just under half of its subcontracting workers who have been on strike for the last 29 days.
The deal, agreed by two out of three sets of representatives from the Confederation of Copper Workers, covers 13,000 of the 28,000 strikers who downed tools on June 25.
Meanwhile, Southern Copper Corp yesterday said it has reached preliminary agreements with four workers unions in Peru, easing supply concerns from one of the world's largest producers of the red metal.
Overall, analysts said, the red metal is expected to remain in a relatively narrow range around 8,000 usd as the trading progresses through the traditionally quiet third quarter, underpinned by low stocks and firm demand.
Among other metals, nickel dropped to 32,500 usd from 33,405 usd, pressured by a further rise in LME stockpiles, which increased a further 804 tonnes this morning to 12,642 tonnes.
Lead meanwhile rose to 3,415 usd against 3,390 usd yesterday, and tin crept up to 15,400 usd from 15,330 usd.
Aluminium inched up to 2,840 usd against 2,825 usd yesterday, while zinc rose to 3,730 usd from 3,695 usd.
source:www.forbes.com
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