July 12, 2017 / 7:26 AM / in 16 days

METALS-Weaker dollar, supply worries underpin London copper

4 Min Read

 (Adds comment, detail, updates prices)
    By Melanie Burton and Jim Regan (Australia)
    MELBOURNE/SYDNEY, July 12 (Reuters) - Copper prices climbed
in Asia to the highest in more than a week on Wednesday, spurred
by a weaker U.S. dollar and concerns about industrial action
that could further crimp mine supply. 
    The dollar fell to a more than one-week low against a basket
of major currencies, after U.S. President Donald Trump's eldest
son released an email chain suggesting he welcomed Russia's help
in last year's election campaign.
    Workers also voted this week to approve a strike at a mine
in Chile, following industrial disputes earlier in the year in
Indonesia and at the world's biggest copper mine, also in Chile,
that have whittled down copper supplies.
    "The short term fundamentals look supportive on the price
where it is, but the more we move into the fall and the winter,
we just don't think that the pace of the Chinese economy can
sustain," said analyst Dane Davis at Barclays in New York.  
    "With the Chinese engaging in the policy of credit
tightening and the real-estate sector starting to cool off, the
evidence suggests you have a weakening in the market. Not a
collapse, because the supply side is too tight, but a return to
price around $2.50 (per pound, $5,500/tonne)." 
    A weaker dollar typically draws interest for U.S.
dollar-denominated commodities such as copper from investors
outside the United States using other currencies.
    
    FUNDAMENTALS
    * LME COPPER: Three-month copper on the LME was up
0.3 percent at $5,895 a tonne by 0712 GMT, having earlier topped
out at $5,920 a tonne, the highest since July 3. Copper prices
have held below $6,000 a tonne since early March.
    * SHFE COPPER: Shanghai Futures Exchange copper
ended up 0.9 percent at 47,250 yuan ($6,959) a tonne.
    * STEEL: SHFE zinc and nickel rallied more
than 2 percent, tracking an uplift in steel amid higher profits
at China's steel makers following closures of outdated capacity.

    * STRIKE: Workers at the Zaldivar copper mine in Chile,
owned by Antofagasta and Barrick Gold Corp,
voted to approve a strike on Monday after talks with the company
failed, a union leader told Reuters.
    * FREEPORT: Indonesia says it will invite the head of mining
giant Freeport McMoRan Inc to Jakarta this month to try
to settle a long-running dispute over a new deal to operate the
world's second-largest copper mine.
     * CHINA CAR SALES: Vehicle sales rebounded in June, shaking
off weakness in the previous two months.
     * MARKETS NEWS: Asian shares gained on Wednesday after Wall
Street managed to weather a fresh twist in the controversy over
U.S. President Donald Trump's alleged connection with Russia,
while investors looked ahead to Federal Reserve Chair Janet
Yellen's comments.    
        
    
 BASE METALS PRICES              0716 GMT           
 Three month LME copper                         5898
 Most active ShFE copper                       47250
 Three month LME aluminium                    1902.5
 Most active ShFE aluminium                    14215
 Three month LME zinc                         2837.5
 Most active ShFE zinc                         23335
 Three month LME lead                           2322
 Most active ShFE lead                         17915
 Three month LME nickel                         9220
 Most active ShFE nickel                       75800
 Three month LME tin                           19915
 Most active ShFE tin                         145330
                                                    
 BASE METALS ARBITRAGE                              
 LME/SHFE COPPER             LMESHFCUc3       558.18
 LME/SHFE ALUMINIUM          LMESHFALc3      -812.65
 LME/SHFE ZINC               LMESHFZNc3        331.8
 LME/SHFE LEAD               LMESHFPBc3     -1305.58
 LME/SHFE NICKEL             LMESHFNIc3      2051.65
 


($1 = 6.7899 Chinese yuan renminbi)

    
 (Reporting by James Regan; Editing by Biju Dwarakanath and
Richard Pullin)
  
 
 

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