Farallon Resources Ltd. (fka FRLIF)

[the cork]

Zinc climbs .6%, Copper Rebounds on Dollar Drop, Possible Labor Dispute in Chile
By Glenys Sim - Oct 28, 2010 12:11 AM PT

Copper rebounded from a two-day drop as the dollar resumed a decline, and on concern that there may be supply disruptions at the world’s fourth-largest mine. Zinc and nickel also rose.

Copper for three-month delivery on the London Metal Exchange gained as much as 0.7 percent to $8,357 a metric ton and traded at $8,340 a ton at 3:06 p.m. in Singapore. February- delivery copper on the Shanghai Futures Exchange fell as much as 1 percent to 63,600 yuan ($9,512) a ton and closed at 64,020 yuan. The contract rose as high as 65,600 yuan yesterday, the highest price since April 2008.

Workers at Anglo American Plc and Xstrata Plc’s Collahuasi copper mine in Chile, the world’s largest copper producer, rejected a company wage offer in a vote yesterday, the union said. Workers are prepared to continue wage negotiations “if the company is willing to talk,” the union’s secretary Juan Antonio Barraza said.

“A strike in Chile is a short-term support for prices that are trading beyond their fundamentals,” Lu Shihua, an analyst at New Era Futures Co., said from Jiangsu today. “The dollar continues to drive day-to-day moves. However, we’re beginning to see demand destruction at these prices and we’ll get more demand falling off as we move into the seasonally weak consumption period.”

The dollar snapped a two-day winning streak against a six- currency basket including the euro on optimism that the global economic recovery remains intact. A European report today may show that confidence in the region’s outlook improved for a fifth consecutive month.

Aluminum climbed 0.5 percent to $2,334 a ton, zinc climbed 0.6 percent to $2,525 a ton, nickel gained 0.5 percent to $22,920 a ton and lead fell 0.2 percent to $2,538 a ton. Tin was little changed at $26,060 a ton.

http://www.bloomberg.com/news/2010-10-28/copper-rebounds-on-dollar-slump-possible-labor-dispute-at-collahuasi-mine.html