(Adds closing prices)
By Maytaal Angel
LONDON, April 11 Copper steadied on Tuesday
after hitting a two-week low as the world's top two copper mines
continue to recover from recent disruptions, while zinc fell to
a new three-month trough.
London Metal Exchange copper ended down 0.3 percent
at $5,765 a tonne, after hitting $5,710, a low since late March.
Copper has faltered after BHP Billiton
restarted production in Chile last week and Freeport McMoRan
said it was waiting for final details on a temporary
export permit in Indonesia.
Concerns over supply disruptions had sent the metal to a
1-1/2 year high of $6,204 in mid-February.
"The (copper) market over-reacted to supply disruptions and
is moving back towards levels that are more justified, though we
still say prices should drop below $5,500 given the supply
demand balance we have currently," said Julius Baer analyst
"There's no real demand growth indicated by (copper) imports
from China," he added.
* COPPER SPREAD: The discount of LME cash copper to the
three-month contract CMCU0-3 was at $32 a tonne, close to the
biggest in four years, indicating adequate supply of refined
metal in the market.
* COPPER SUPPLY: Union representatives and executives from
miner Southern Copper in Peru failed to reach an accord
to end an indefinite strike, the union said.
* ZINC: The market focus is on receding supply worries. LME
zinc ended down 1.8 percent at $2,570, having hit its
lowest since early January at $2,558.
* ZINC SUPPLY: Diversified miner Vedanta Resources
said refined zinc production at its India unit rose nearly 40
percent in the fourth quarter.
"Zinc continues to see plenty of sellers lined up on every
rally amid increasingly aggressive CTA selling and ongoing long
liquidation," said broker Marex Spectron.
* CURRENCIES: The dollar fell broadly as geopolitical risk
and declining U.S. Treasury yields pushed traders out of the
greenback. A weaker dollar makes dollar-priced metals cheaper
for non-U.S. investors.
* NICKEL: The two biggest nickel miners in the Philippines,
Nickel Asia Corp and Global Ferronickel Holdings
, said prices for the metal would be robust this year
due to growing demand from China.
* ALUMINIUM: China's aluminium makers are expected to step
up exports in coming months as a healthier global manufacturing
climate and declining world stockpiles boost demand.
* PRICES: Nickel ended down 3.3 percent at $9,840,
aluminium closed down 0.3 percent at $1,921, tin
ended down 1.4 percent at $20,000, while lead ended down
0.4 percent at $2,248.
(Editing by David Evans)