Copper inched higher on Wednesday, buoyed by a landmark planned merger between Anglo American and Teck Resources, and ongoing supply concerns following global mine disruptions.

Three-month copper on the London Metal Exchange edged up 0.28% to $9,942 per metric ton, as of 0700 GMT, while the most-traded copper contract on the Shanghai Futures Exchange increased 0.1% to 79,790 yuan ($11,205.67) a ton.

On Tuesday, London-listed miner Anglo American and Canada’s Teck Resources announced plans to merge, creating the world’s fifth-largest copper company and marking the sector’s second-largest M&A transaction to date, a big bet on copper by Anglo.

Analysts from ANZ noted that recent disruptions at major mines may further tighten the copper market, which is already facing a shortage of feedstock.

Freeport-McMoRan announced on Tuesday a temporary halt on mining in Indonesia’s major Grasberg mine after a large flow of wet materials blocked access to parts of the underground mine, restricting evacuation routes for seven workers.

Meanwhile, China’s new bank loan issuance in August is expected to have increased, a Reuters poll showed on Tuesday, bouncing back from a shock contraction in the previous month.

Manufacturing activity had declined for a fifth straight month in August, suggesting producers are awaiting further clarity on a trade deal with the U.S. while domestic demand remains sluggish.

Elsewhere, China Zinc Smelters Purchasing Team (CZSPT) set processing fees for cargoes imported by the end of the fourth quarter at $120-140 a dry metric ton, versus $80-100 for the third quarter, state-backed research house Antaike said late on Tuesday.

LME zinc gained 0.54%, while SHFE zinc increased 0.07%.

Nickel edged up 0.33%, tin rose 0.77%, and aluminium gained 0.15%, while lead lost 0.08%.

SHFE aluminium rose 0.19%, and tin edged up 0.24%, while nickel dipped 0.07%, and lead decreased 0.71%.
Source: Reuters