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METALS-London copper buoyed near 3-week peak on supply worries
May 26, 2017 / 6:05 AM / in 5 months

METALS-London copper buoyed near 3-week peak on supply worries

 (Adds comment, detail; updates prices)
    By Melanie Burton
    MELBOURNE, May 26 (Reuters) - London Metal Exchange copper
hovered near its highest in three weeks on Friday, supported by
supply concerns after news of further disruption at Indonesia's
Grasberg, one of world's biggest copper mines.
    Freeport McMoRan Inc said on Thursday that mining
and milling rates at its Grasberg mine in Papua, Indonesia have
been affected by an extended strike, and a "large number" of
about 4,000 absentee workers were deemed to have resigned.

    "Supply disruptions are an ongoing issue," said analyst Amy
Li of National Australia Bank in Melbourne.
    "It's supportive for prices, but should already be priced
in. On the demand side, China is gradually slowing down, and we
haven't seen much from the U.S. - they promised a big
infrastructure package but no details yet." 
    NAB sees a largely balanced market for 2017 and a small
surplus in 2018, with prices averaging $5,720 a tonne.
    
    * LME COPPER: London Metal Exchange copper traded at
$5,730 a tonne at 0710 GMT, up 0.1 percent after a small gain
the previous session. Prices on Thursday tipped the highest
since May 3 at $5,768.50 and have held in a wider $5,480-$5,800
range since mid-April.
    * SHFE COPPER: Shanghai Futures Exchange edged up
0.2 percent to 46,000 yuan ($6,708) a tonne as traders closed
out positions ahead of a long weekend.
    * HOLIDAYS: The London Metal Exchange and Shanghai Futures
Exchange will be closed on Monday for a long holiday weekend. 
    * NICKEL: LME nickel was facing a 3-percent weekly
loss, after trade data this week showed that the Philippines is
ramping up ore exports to China, fuelling concerns of
oversupply. 
    * CHINA CREDIT: China's structural reforms will slow the
pace of its debt build-up but will not be enough to arrest it,
and another credit rating cut for the country is possible down
the road unless it gets its ballooning credit in check,
officials at Moody's said.
    * PREMIUMS: China bonded copper premiums jumped $10 to $75,
off the year's lows to the highest since March amid drawdowns
from Chinese exchange inventories. Premiums for zinc to China on
a cost insurance and freight basis rose $5 to $135, the highest
since March 2016. <0#BASEBW-SHMET> <0#BASECIF-SHMET>
    * COMING UP: U.S. durable goods for April at 0230 GMT
    PRICES    
    
 BASE METALS PRICES             0709 GMT            
 Three month LME copper                       5729.5
 Most active ShFE copper                       46000
 Three month LME aluminium                    1963.5
 Most active ShFE aluminium                    14085
 Three month LME zinc                           2647
 Most active ShFE zinc                         22315
 Three month LME lead                         2110.5
 Most active ShFE lead                         15980
 Three month LME nickel                         9065
 Most active ShFE nickel                       75190
 Three month LME tin                           20390
 Most active ShFE tin                         144750
                                                    
 BASE METALS ARBITRAGE                              
 LME/SHFE COPPER             LMESHFCUc3        57.01
 LME/SHFE ALUMINIUM          LMESHFALc3     -1600.15
 LME/SHFE ZINC               LMESHFZNc3       428.35
 LME/SHFE LEAD               LMESHFPBc3     -1458.51
 LME/SHFE NICKEL             LMESHFNIc3      1458.68
 

($1 = 6.8577 Chinese yuan renminbi)

    
 (Reporting by Melanie Burton; Editing by Richard Pullin and
Joseph Radford)
  
 
 

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