Base metals may rise on supply disruptions in major mines

Industrial metals prices rebounded yesterday from seven-month lows as some investors went bargain hunting and others closed out short positions, but gains were capped by worries about Cyprus and uncertain demand in China.

Codelco, the world's No. 1 copper producer, has been unable to export some metal from its massive mines due to a strike by port workers in northern Chile, the company said on Wednesday.

Price spreads of cash copper on the London Metal Exchange and the spot Shanghai market have widened to the best arbitrage opportunity for imports into top consumer China since late 2011, although already high stocks may cap fresh orders.

South Korea is seeking 3,000 tonnes of copper for August arrival via a tender, the state-run Public Procurement Service said on its website

Commodity trader Glencore is expected to produce about 60,000 tonnes of lead this year at its reopened smelter in Portovesme, on the Italian island of Sardinia, industry sources said.

Global crude steel production rose 1.2 percent to 123 million tonnes in February, compared with the same month a year earlier, data from the World Steel Association (Worldsteel) showed on Wednesday.

Industrial metals prices are trading higher on international bourses today. We expect a further rise in the prices of metals on account of supply disruptions in major mines. Copper in particular can be bought at dips for the day.

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