By Anna Stablum Nov. 5 (Bloomberg) -- Copper fell in London as the dollar strengthened, making dollar-priced commodities more expensive for other currency holders, and on speculation the global economic recovery may falter. The Dollar Index, a six-currency gauge of the greenback’s performance, rose as much as 0.4 percent. The U.S. Federal Reserve yesterday reiterated its pledge to keep interest rates near zero for an “extended period.” “The stronger dollar is taking the shine off base metals,” Daniel Major, an analyst at RBS Global Banking & Markets in London, said by phone. “We remain reasonably cautious into the year end as people are likely to take some risk off the table.” Copper for three-month delivery fell $30, or 0.5 percent, to $6,545 a metric ton on the London Metal Exchange at 9:47 a.m. December-delivery copper declined 0.7 percent to $2.972 a pound on the New York Mercantile Exchange’s Comex unit. Prices also fell as inventories in LME-monitored warehouses rose by 1.5 percent to 379,825 tons, the highest since May 11. Copper has more than doubled this year, partly because of stronger-than-expected demand from China. The Asian nation, the world’s biggest consumer of the metal, imported record amounts in the first half. The gain in prices may be supported by strikes at mines. The combined annual capacity at copper mines where labor negotiations are being held this year is 1.2 million tons, RBS’s Major said. “There is potential strike action at Antamina, which could be supportive in the coming days,” he said. Copper Mines Cia. Minera Antamina SA, operator of the world’s largest combined copper and zinc mine, said it has a “contingency” plan in case labor talks break down. The company, owned by BHP Billiton Ltd., Xstrata Plc, Teck Cominco Ltd. and Mitsubishi Corp., is interested in reaching a “reasonable agreement” with the workers union, Antamina said yesterday. The mine is expected to produce 335,000 tons of copper, or 2.2 percent of global supply, this year, according to RBS. In Chile, Codelco’s Andina copper mine workers are “confident” they can reach a wage deal with management, the company’s main employee representative said yesterday. BHP Billiton, the world’s largest mining company, failed to reach an agreement with striking workers at its 180,000-ton per year Spence copper mine in Chile, union officials said Nov. 3. Among other LME metals for three-month delivery, aluminum fell 0.5 percent at $1,915 a ton, zinc shed 0.5 percent to $2,217.25 a ton, and lead declined 1.3 percent to $2,320 a ton. Tin fell 0.8 percent to $14,880 a ton, and nickel was little changed at $17,900 a ton. To contact the reporter on this story: Anna Stablum in London at astablum@bloomberg.net

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