Copper prices stayed close to higher levels, supported by tightening stocks and lingering South American strikes and supply threats.

The London Metal Exchange (LME) said inventories fell by 2,425 tonnes, the biggest drop since the start of June, to 107,950 tonnes, in a daily report.

Meanwhile, supply was under threat from Chile where workers at Collahuasi, the country’s third largest mine, plan to strike in four days time. Also, workers at the world’s biggest copper mine, Codelco in Chile, have been on strike since the end of June.

Near term buoyancy in the copper market is mainly down to strike action, said Barclays Capital analyst Sudakshina Unnikrishnan.

Copper has gained 3 pct since the start of this month, from the highs.

“The strikes add a certain sense of vitality,” said Unnikrishnan.

The third quarter is traditionally a quieter period for the metals market, with several industry players off on long vacations over the summer.

At 9.33 am, LME copper for three-month delivery stood at 7,782 usd a tonne against 7,830 usd at the close yesterday. Earlier in the session, copper hit 7,865 usd — the highest price since mid-June.

The strike in Chile is having impact, mainly because Codelco’s production has been cut from two mines, noted Numis Securities analyst John Meyer.

In other metals, lead was lower at 2,850 usd from 2,883 usd, nickel was down at 36,100 usd from 36,250 usd, aluminium eased to 2,780 usd from 2,785 usd, zinc was down 3,428 usd from 3,460 usd while tin was down slightly at 14,000 usd from 14,125 usd.

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