Copper Reaches a Record as Grupo Mexico Fails to End Strike
Copper reached a record high in London as Asarco LLC, responsible for about 1 percent of world copper supply, failed to end a strike at mines, refineries and smelters in Arizona and Texas now entering its seventh week.
Asarco, the U.S. copper-mining unit of Grupo Mexico SA, and the United Steelworkers of America made no progress on ending the strike at mines in Arizona and a Texas smelter and no new talks are scheduled, said Pete Cinquemani, commissioner of the Federal Mediation & Conciliation Service, on Aug. 13.
Copper for delivery in three months on the London Metal Exchange rose as much as $28, or 0.8 percent, to $3,615 a metric ton. It was up $14, or 0.4 percent, to $3,601 as of 11:51 a.m. in London. Copper for immediate delivery, also known as the “cash'’ price, was at $3,773 a ton.
“It seems that copper has traded higher off the back of the strike,'’ Ingrid Sternby, an analyst at Barclays Capital in London, said in a telephone interview today. “We remain bullish. It’s still a bit away from our price target of $3,900 for cash.'’
Copper has risen 15 percent this year as strikes at Asarco and Zambia’s Konkola Copper Mines have disrupted supply at a time of surging demand from China and the U.S., the world’s two biggest users of the metal.
More: bloomberg.com
VW Mexico workers may strike Thursday for 12.5 pct pay hike
Volkswagen AG workers at its Puebla plant in Mexico may go on strike on Thursday to support demands for a 12.5 pct pay hike, Financial Times Deutschland reported, citing a trade union spokesman.
The spokesman said while VW has not made an offer yet it has rejected a 'spectacular salary adjustment'.
Workers at the plant last staged a three-day strike one year ago and pushed through a 4.5 pct wake increase.
The Puebla plant makes the New Beetle and Jetta and employs 12,000 workers.
More: forbes.com
Grupo Mexico Urges Authorities to End 24-Day Copper Mine Strike
Grupo Mexico SA, the worlds seventh-largest copper producer, said it is urging authorities to arrest union members blocking work at a copper mine and concentrator in Mexico after a 24-day strike threatens to leave the company short for May copper deliveries.
Mexico City-based Grupo Mexico is losing daily production of about 1,100 metric tons of copper content in concentrate from what the company calls illegal work stoppages, said Juan Rebolledo, Grupo Mexicos spokesman, in a telephone interview. The company said last week it notified customers it may not make May
Copper May Rise in London on Inventory Drop, Mexico Mine Strike
Copper may rise to a record in London on speculation that supply will lag behind demand after inventory declined and a strike at Mexico's largest producer continued for a fourth day.
Stockpiles stored in London Metal Exchange-monitored warehouses fell 2.4 percent to 120,925 metric tons, the LME said today in a daily report. That's less than three days global consumption. Workers at Grupo Mexico SA's La Caridad mine in northern Mexico continued a protest, demanding better safety conditions. Reduced supply may lift prices by as much as $200 a
Grupo Mexico official says Asarco strike settlement possible
Officials from Mexican copper mining concern Grupo Mexico SA were meeting with union representatives Friday to try to resolve a three-week-old U.S. strike at the company's Asarco unit, an official said Friday.
In a conference call with analysts to discuss Grupo Mexico's second-quarter results, chief financial officer Eduardo Gonzalez said he believed a solution to the strike was possible.
Friday's meeting was the first between management and the union since more than 1,500 workers went on strike in Arizona and Texas to protest the company's proposed wage freeze and reductions in health and pension
Grupo Mexico Shuts San Martin Mine as Strike Lingers
Grupo Mexico closed its San Martin zinc mine because of a strike that has halted production since March, signaling labor disputes that have crimped world metal supplies wont end soon.
Its impossible to even hope that this is going to be resolved, spokesman Juan Rebolledo said in a television interview on TV Azteca. Thats why we closed it.
Lost production from San Martin and Grupo Mexicos La Caridad mine helped push copper to record prices on the London Metal Exchange this year, as some analysts forecast 2006 production will lag behind
Mexico OKs Request to Close Copper Mine
Mexican labor authorities approved Grupo Mexico SAs request to close the La Caridad copper mine and cancel the collective contract after a three-month strike, a company official said Friday.
Juan Rebolledo, vice president for international affairs for Grupo Mexico, said the labor arbitration board approved the closure of the mine in northwestern Sonora state, and that the company can now cancel the contract which involves at least 1,200 unionized workers.
About 700 nonunion staff and 800 contract workers also will be affected, although the company can later reopen the mine with other workers once the
BASE METALS UPDATE: Grupo Mexico: Cananea Talks Going Well
Workers at La Cananea, a copper mine located in northern Sonora state, said Tuesday that talks were advancing well with parent company Grupo Mexico SA (GMEXICO.MX) over annual contract revisions.
Union Committee Plans To Discuss Asarco Offer Wednesday
The union bargaining committee representing workers striking against Asarco Inc. (ASX.XX) is planning to meet Wednesday to discuss a one-year contract offer that has been made by the company, as well as other issues, a union official reported Tuesday morning.
Mexico Steel Talks End Without Deal, No Strikes Seen Tue
Six years after buying U.S. copper giant Asarco and its prized Peruvian assets, Grupo Mexico might opt to sever links with its U.S. unit and end fights with its feisty union.
With all 1,500 unionized workers at Asarco on strike alleging "bad faith" contract negotiations by the company and both sides not even in talks, analysts say Grupo Mexico could turn its back on its troubled U.S. operations.
The Mexicans have openly said they are considering asset sales at Asarco, which Grupo Mexico bought for more than $2 billion in 1999, an acquisition that almost sank the company when copper prices then
Merrill Lynch opens Grupo Mexico cover with "buy"
Merrill Lynch began coverage of Mexican copper giant Grupo Mexico with a "buy" rating on Tuesday, pointing to strong prices, a debt restructuring and improvements in returning cash to shareholders.
Merrill Lynch set its 12-month price target for Grupo Mexico at 26 pesos per share. They were trading on Tuesday morning at 18.57 pesos, up 1.31 percent in the session.
Grupo Mexico has leveraged record metals prices to tidy up its finances, reducing net debt from $2.5 billion in December 2004 to $1.4 at the end of June.
Grupo Mexico is the world's No. 3 copper
Bradesco, Petrobras, Grupo Mexico, Geo: Latin Equity Preview
Mexico's largest homebuilder by market value is the best performer in the country's benchmark stock index this year to date, with a 66 percent gain. The shares fell 10 centavos, or 0.3 percent, to 36.90 pesos yesterday.
America Movil SA (AMXL MM): Latin America's largest mobile- phone company have gained 63 percent this year, the second-best performance on the Mexican stock index after Geo. The shares fell 3 centavos, or 0.2 percent, to 15.86 pesos yesterday.
Grupo Mexico SA (GMEXICOB MM): Copper, Grupo Mexico's main product, rose to a record 41,970 yuan
