Copper rose on Thursday as a report showed inventories of the metal declined and investors speculate supplies will be insufficient to meet global demand.
Inventories of copper monitored in the London Metal Exchange dropped 575 metric tons or 0.5 percent to 120,850 tons. According to reports this is the largest decline since May 7.
Copper futures for delivery in three months climbed 5.75 cents or 1.56 percent to $3.7385 a pound on the New York Mercantile Exchange Comex division. Prices rose the most in more than a week.
Investors await the progress of a dispute in Chile at Codelco. Worker's leaders are in a hunger strike after the state-owned company won a court rule on Monday that overturned an order to hire contract workers as regular employers.
The current situation rose concerns that miners could disrupt supplies of copper. Codelco is the first producer of the red metal in the world.
Supporting prices today, copper rose as demand for commodities increased after the dollar fell against major currencies earlier. Crude oil futures also rose earlier but ended with losses.
Despite of the increase today, gains were limited after investors speculate a slower global growth may curb demand. According to data from the Federal Reserve, U.S. industrial production fell 0.7 percent last month and Chinese industrial production grew in a weaker pace according to data on Wednesday.
China is the first consumer of copper in the world. Traders speculate high prices prompted Chinese imports to decline and they think users wait for further price falls to return to the market.
Copper futures for three month delivery in the London Metal Exchange fell $101 or 1.21 percent to $8,223 a metric ton.