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METALS-Copper eases on virus fears, U.S. stimulus uncertainty

(Updates prices, adds quotes)

Oct 27 (Reuters) - Copper prices dipped on Tuesday amid caution over surging global coronavirus infections and the uncertainty around a new U.S stimulus package ahead of the Nov. 3 presidential election.

Three-month copper on the London Metal Exchange fell 0.04% to $6,778.50 a tonne by 0435 GMT, while the most-traded December copper contract on the Shanghai Futures Exchange declined 0.8% to 51,500 yuan ($7,683.24) a tonne.

The United States, Russia, France and many other countries set records for daily infections, while a much-awaited U.S. stimulus is yet to be agreed, making investors stay on the sidelines ahead of the election.

“The biggest factor is macro uncertainty as well as rising COVID-19 cases, which also cast shadow on the economic recovery. The U.S. election could add to the risk aversion, while hopes on stimulus bill (have) also faded,” a Singapore-based copper analyst said.

“It seems the price could be stuck in an expanded trading range for a while, though in the mid- to long-term, it still looks quite bullish,” the analyst said, adding that China’s upbeat macro data suggests a promising demand outlook next year despite weak physical demand now.

FUNDAMENTALS

* LME aluminium rebounded 0.1% to $1,830 a tonne from a two-week low hit in the previous session and tin rose 0.6% to $18,155 a tonne after hitting its lowest since Oct. 5 on Monday.

* ShFE lead edged up 0.8% at 14,425 yuan a tonne, rebounding from a four-month low hit earlier in the session at 14,020 yuan a tonne, while zinc declined 0.3% to 19,700 yuan a tonne.

* Shipments from MMG Ltd’s Las Bambas copper mine in Peru have returned to normal after nearly a week of disruption.

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