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METALS-Copper up on U.S. airlines, payroll aid hopes after stimulus deal stalls

(Updates prices, adds quotes)

Oct 7 (Reuters) - Copper prices edged up on Wednesday as U.S. airlines and payroll aid hopes helped the metal recover from earlier losses following an end to talks on a large U.S. coronavirus stimulus bill.

“Copper traded lower after U.S. President Donald Trump ended talks with the Democrats about a new stimulus package.(But) fresh Trump comments about supporting airlines and a Paycheck Protection Program helped pare earlier losses,” commodities broker Anna Stablum of Marex Spectron said in a note.

Trump said Congress should quickly extend $25 billion in new payroll assistance to U.S. passenger airlines furloughing thousands of workers as air travel remains down sharply.

The demand came hours after Trump announced his administration would abandon talks with congressional Democrats over proposals to spend at least $1.6 trillion in additional coronavirus relief funds.

Copper is often used as a gauge of global economic health and a U.S. stimulus bill would have supported a recovery in the world’s biggest economy.

Three-month copper on the London Metal Exchange rose 0.2% to $6,541 a tonne by 0731 GMT, having declined as much as 1.2% earlier in the session.

Nickel advanced 1% to $14,665 a tonne, aluminium rose 0.5% to $1,774 a tonne and lead was up 0.7% at $1,793 a tonne.


* Tesla Inc is in talks with BHP Group about a nickel supply deal, Bloomberg News reported.

* LME cash aluminium last traded at a discount of $25.50 a tonne over the three-month contract CMAL0-3, its smallest since July 2 as LME inventories MALSTX-TOTAL fell to their lowest since May 18 at 1.43 million tonnes.

* BHP Group Ltd, has suspended its membership of an Australian state mining lobby group that has campaigned against the Greens political party ahead of an election this month in coal-rich Queensland state.

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Reporting by Mai Nguyen; Editing by Vinay Dwivedi