Copper futures rise amid threat of strike in Indonesian mine and Chinese demandCopper futures rose on August 31 as a possible strike at an Indonesian mine increased buying of the metal. Anticipation of strong physical demand from China also helped to fuel speculative buying, Reuters reports. Industry insiders have speculated that such a strike could significantly affect supply, which could cause problems for trading of the metal, according to Dow Jones Newswires.

The most-actively traded copper futures contract, which is scheduled for December delivery, rose 1.3 percent to reach $4.1940 per pound on the Comex division of the New York Mercantile Exchange, Dow Jones Newswires reports. Copper futures scheduled for September delivery also rose 1.3 percent to hit $4.1765 a pound.

"I think copper has been in a technical rebound this week boosted by the strike threat in Indonesia and anticipation of China restocking soon," Minmetals Futures analyst Zhuo Gui Qiu told Reuters.

Copper is utilized in manufacturing and the price of its futures is largely based on anticipated activity in that sector. If traders believe that manufacturing activity will improve, they will drive up the price of the commodity. Alternatively, speculation that output in the sector will drop will lead to lower prices.  
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