* Comex copper speculators cut long position in latest week
* Nickel only metal in the blue
(Adds closing prices)
By Zandi Shabalala
LONDON, March 6 Copper prices fell to a more
than one-week low on Monday on concerns the metal had extended
too much but supply disruptions at the world's two biggest
copper mines provided some support.
Three-month copper on the London Metal Exchange
closed 1 percent lower at $5,858 tonne, its lowest since Feb.
"The super enthusiastic reception to Donald Trump and a
wider positive attitude for risky assets has gone a bit too far.
Things need to be put in that context of markets being
overbought," said Oxford Economics head of commodities research,
Copper has risen about 15 percent since Trump was elected
U.S. President in November after he pledged to increase spending
on infrastructure which would benefit commodities.
In supply news, Indonesia will not back down from new rules
requiring Freeport-McMoran to divest a majority stake in
its local unit, its mines minister said late last week in a
dispute over rights to the world's second-biggest copper mine
which has frozen exports.
Meanwhile, Chile expects economic activity growth to be hit
by around one percentage point in February because of a strike
at world no.1 copper mine Escondida, as copper output slides 12
Despite this supply reduction, the copper cathode market
will record a surplus, JP Morgan analyst Natasha Kaneva said.
"Global demand remains healthy but production is responding
positively to higher prices in all metals, keeping pace with
demand and maintaining well-supplied markets," Kaneva said.
China, which is copper's biggest consumer, cut its growth
target this year as the world's second-largest economy pushes
through painful reforms to address a rapid build-up in debt, and
erects a "firewall" against financial risks.
Speculators cut their bullish position in Comex copper
futures and options by 7,851 lots to 70,660 lots, U.S. Commodity
Futures Trading Commission data showed on Friday.
Lead fell 0.3 percent to $2,243 tonne after touching
its lowest in more than seven weeks at $2,199.50.
Tin ended down 0.3 percent at $19,450 a tonne.
Aluminium slipped 0.9 percent to $1,876 a tonne. The
commodity hit a two-year high of $1,957 a tonne last week as
China pressed on with plans to cut output by 30 percent over the
winter heating season.
Zinc fell the most among the metals, down 1.2
percent to $2,740.50 a tonne while nickel rose 1 percent
to $11,095 a tonne.
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Most active ShFE nickel
Three month LME tin
Most active ShFE tin
($1 = 6.8954 Chinese yuan)
(Additional reporting by Melanie Burton in Melbourne; Editing
by Ruth Pitchford and Ed Osmond)