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METALS-Copper dips in thin trade as U.S. election buzz fades

(Updates prices)

Nov 5 (Reuters) - Copper prices in London edged lower on Thursday in thin trade, as volatility sparked by the U.S. presidential election tapered off, with Democrat Joe Biden predicting victory over President Donald Trump after winning two critical U.S. states.

A softer U.S. dollar offered some support after slipping to its weakest level in more than two years against the yuan, making greenback-priced metals cheaper for holders of other currencies.

“Now the election buzz is more or less over. Prices are not down too much so far. I think prices were a bit overdone. Market was too optimistic,” said a Singapore-based metal trader.

Biden stopped short of declaring victory, but launched a website for a transition to a Democratic-controlled White House, while Trump alleged fraud, filed lawsuits and demanded recounts in a race yet to be decided a day after polls closed.

Three-month copper on the London Metal Exchange dipped 0.3% to $6,814.50 a tonne at 0715 GMT, having climbed some 56% since its 2020 trough in March, helped by strong Chinese demand, supply disruptions, stimulus hopes and a weaker dollar.

Meanwhile, the most-traded December copper contract on the Shanghai Futures Exchange closed down 0.5% to 51,420 yuan a tonne.

FUNDAMENTALS

* LME aluminium fell 0.5% to $1,898 a tonne and zinc declined 0.3% to $2,586 a tonne, while lead was down 0.3% to $1,836.50 a tonne.

* ShFE aluminium edged up 0.4% to 14,850 yuan a tonne and zinc rose 0.1% to 19,845 yuan a tonne, while lead advanced 0.8% to 14,425 yuan a tonne.

* Copper volumes on world exchanges are climbing again as a buoyant economic recovery from COVID-19 in top metals consumer China spurred speculators to pile back into the market.

* A union of workers at Chile’s Candelaria copper mine, owned by Canada’s Lundin Mining Corp, said late on Tuesday it had rejected yet another contract offer from the company and will push forward with a nearly month-long strike that has shut down the mine.

* For the top stories in metals and other news, click or (Reporting by Mai Nguyen; Editing by Krishna Chandra Eluri and Devika Syamnath)

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