Updated from 1:37 p.m. ET

Southern Copper ( PCU) was up 8% on Tuesday as copper producers could benefit by an attempt in South America to coordinate pricing.

On Sunday, Peru's president said that Peru and Chile, two of the world's top three copper producers, should work together to boost sagging metal prices as the world economic crisis slashes demand for copper.

Peru President Alan Garcia told reporters in Lima that when neighboring countries that produce copper compete, "prices decline and both of them earn less. It would be a very important thing to lay out and coordinate our policies."

Southern Copper, headquartered in Phoenix, conducts most of its operations in Peru. Shares were up $1.02 to $13.76.

An OPEC-like copper cartel would aim to stem a steep slide in copper prices that has reduced mining profits and investment and boosted unemployment, slowing both countries' economies.

Freeport McMoRan ( FCX) rose 7.3% to $28.41.

Sterlite Industries ( SLT) of India, which is engaged in copper smelting and refining, saw its shares rise 4.2% to $4.45.

Encore Wire ( WIRE), a McKinney, Texas-based manufacturer of copper electrical building wire and cable, was down 19 cents to $17.18 a share.

Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

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