for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

METALS-Copper rises as Chile mine strike, Chinese demand lift prices

Oct 14 (Reuters) - Copper in London advanced on Wednesday, as the threat of mine supply disruptions in Chile, a top producer of the industrial metal, and stronger consumption from leading consumer China supported prices.

Three-month copper on the London Metal Exchange rose 0.3% to $6,713.50 a tonne by 0346 GMT, while the most-traded November copper contract on the Shanghai Futures Exchange fell 0.4% to 51,330 yuan ($7,615.05) a tonne.

Though the Escondida mine in Chile could continue to operate even if supervisors walked off the job, a strike could lead to production bottlenecks or slowdowns.

Canada’s Lundin Mining will talk with the Mina union at its Candelaria copper deposit to try to end a strike, while supervisors at Escondida mine and mine operator BHP will extend negotiations in an attempt to stave off a strike at the world’s largest copper deposit.

“Physical demand picked up a little month-on-month, but is still lower year-on-year. (October is) supposed to be strong, but it’s not that strong (yet),” said CRU copper analyst He Tianyu, adding that demand might gather pace again in two weeks.

FUNDAMENTALS

* LME aluminium fell 0.2% to $1,855 a tonne and lead declined 0.3% to $1,796 a tonne while in Shanghai, aluminium rose 0.2% to 14,640 yuan a tonne and zinc dropped 1% to 19,165 yuan a tonne.

* For the top stories in metals and other news, click or

MARKETS NEWS

* Asian equities slipped as risk appetite was soured by a halt in COVID-19 vaccine trials and an impasse in talks on a U.S. fiscal aid package, while the greenback held on to gains as demand firmed for safe-harbour assets.

DATA/EVENTS (GMT)

0630 India WPI Inflation YY Sept

PRICES

Three month LME copper

Most active ShFE copper

Three month LME aluminium

Most active ShFE aluminium

Three month LME zinc

Most active ShFE zinc

Three month LME lead

Most active ShFE lead

Three month LME nickel

Most active ShFE nickel

Three month LME tin

Most active ShFE tin

ARBS

Breakingviews

Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.


Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up