Copper up on strikes, low inventories

Copper prices were higher in London on Monday, breaching the $8,000 level for the first time since May before dropping back to trade at $7,985 per tonne by the close of trade, still a gain of 1.6 percent on the session.

The gains came as inventories in London Metal Exchange warehouses dropped by 3,400 tonnes to just over 102,000 tonnes, barely two days of global consumption.

Supply worries are being magnified by strikes at mines in Chile, Mexico, and Canada, while Peruvian miners are threatening to walk off the job.

While some analysts are saying that prices for copper will decline this year and next, JPMorgan (NYSE: JPM; TYO: 8634) has raised its prediction for prices by 8 percent for this year and by 37 percent for 2008.

In New York, September copper was 4 cents higher to $3.63 per pound.

Elsewhere, lead added 3.2 percent to $2,955 per tonne after rising to an all-time high of $2,962 earlier in the session on demand in China and on supply problems in Australia.

Aluminium was steady at $2,812 per tonne.

Nickel fell 2.8 percent to trade at $34,300 per tonne.