* Premium for cash tin over 3-month jumps
* LME/ShFE arb: tmsnrt.rs/2oQ5nm2
(Adds closing prices)
By Pratima Desai
LONDON, May 2 Copper prices hit a three-week
high on Tuesday due to concerns about supply disruptions in
Indonesia, but caution over slowing demand in top consumer China
Benchmark copper on the London Metal Exchange,
untraded in the rings, ended up 1.2 percent at $5,735.50 a tonne
from an earlier $5,820 a tonne, its highest since April 10.
"The news about the strike in Indonesia at Grasberg has
lifted prices," said Julius Baer analyst Carsten Menke, adding
that slowing activity in China's manufacturing sector, a major
source of demand for industrial metals, was a negative.
GRASBERG: Thousands of workers from the Indonesian unit of
Freeport McMoRan Inc staged a rally near the Grasberg
copper mine on Monday, protesting against layoffs by the miner
due to a contract dispute with the government.
CHINA: China's factory sector lost momentum in April, with
growth slowing to its weakest pace in seven months as domestic
and export demand faltered and commodity prices fell, a private
survey showed on Tuesday.
LEAD: The price of lead was slightly weaker at
$2,248 a tonne, but supported by worries about supplies on the
LEAD STOCKS: Latest data shows lead stocks in LME approved
warehouses up 4,150 to 169,425 tonnes MPBSTX-TOTAL, but that
total is still 10 percent below the level at the end of March.
LEAD WARRANTS: Cancelled warrants -- material earmarked for
delivery and so not available to the market -- account for
nearly half of total inventories. Traders are also watching a
large position holding between 30 and 39 percent of warrants.
LEAD SPREADS: The premium, or backwardation, for cash metal
over the three-month contract rose to $34.50 a tonne on Friday,
its highest since late January MPB0-3.
LEAD DEMAND: "On the demand side, offtake remains strong on
both sides of the Atlantic, with only limited signs of seasonal
weakness," INTL FCStone analyst Edward Meir said. "European
battery demand is particularly good on account of strong vehicle
sales. However, the Chinese market does not look as inspiring."
TIN SPREADS: The premium for cash tin over the three-month
rose to $90 a tonne MSN0-3 on Friday, its highest since March
21 as traders fretted about shortages on the LME market.
Three-month tin rose 0.3 percent to $19,960 compared
with an earlier $20,085, its highest since April 12.
TIN STOCKS: Inventories of tin in LME warehouses at 2,865
tonnes are less than half the 5,995 recorded on Feb. 16 and
account for less than one percent of global consumption
estimated at around 350,000 tonnes this year.
PRICES: Aluminium was up 0.9 percent at $1,929.50
and zinc added 1.2 percent to $2,655. Nickel was
ended 0.7 percent higher at $9,515 a tonne.
(Editing by Jane Merriman and David Evans)