Copper gains on demand outlook

SINGAPORE: London copper prices rallied almost 3 percent to a 16-month peak yesterday after the Christmas break, chasing gains made in Shanghai over the holiday period.

Strike votes at two large Chilean copper operations, Codelco's Chuquicamata mine and Xstrata's Altonorte smelter, are seen lifting sentiment as the year grinds to a close and investors assess what next from markets that have rallied around 140 percent this year.

"The strength in copper is likely to continue at least through January, as sentiment is very optimistic and so far there doesn't seem to be any major news that would alter the trend," Guo Yong, an analyst at Jinrui Futures, said.