Copper prices rise on China demand, damage at Chile mine

Copper prices were higher Wednesday on reports that demand for the metal was higher in China in June and that manufacturing also expanded there during the month.

June imports of refined copper were up 12 percent from May’s levels to 378,943 tonnes.

In addition, prices were pushed upward by news that the Collahuasi mine in Chile will likely see output cut for months after the main conveyor belt at the site was put out of commission by an electrical malfunction which damaged the equipment powering the belt.

It was reported that the mine will likely have to use trucks to move material until repairs to the equipment are completed.

There was also another attack against miners at an Indonesian mine controlled by Freeport-McMoRan (NYSE: FCX) where several miners have been killed recently.

September copper was up 7 cents to $2.53 per pound in New York trade while three-month copper added $64 to $5,464 per tonne on the London Metal Exchange.

Other base metals were also higher on the session.

Gold, meanwhile, was higher on a weaker dollar after Federal Reserve Chairman Ben Bernanke repeated before a Senate committee his testimony yesterday before the House that US interest rates will remain low for the foreseeable future.

August gold added $6.80 to $953.70 per troy ounce in New York trade while September silver was up 24 cents to $13.72 per troy ounce.

October platinum was down $1.30 to $1,175.70 per troy ounce while September palladium had dropped 90 cents to $256.60 per troy ounce in midday trade in New York.