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

METALS-Copper rises on Biden's budget plans, Chile supply threat

(Updates prices, adds details)

HANOI, May 28 (Reuters) - Shanghai copper advanced on Friday as traders bet on prospects of a massive U.S. federal spending, while supply concerns in Chile also lent support to prices.

Copper is often termed as the bellwether of the global economy and also widely used in infrastructure projects.

U.S. President Joe Biden will seek $6 trillion in U.S. federal spending for the 2022 fiscal year, rising to $8.2 trillion by 2031, the New York Times reported, and that will likely boost growth and infrastructure.

Strikes at BHP’s Escondida and Spence mines in top producer Chile continue to threaten global supply.

“Sentiment received a boost after Biden’s proposed a $6 trillion budget, including a huge upgrade of U.S. infrastructure,” said ANZ analysts in a note.

“Copper has suffered its own supply side issues ... Escondida and Spence copper mines continue to operate, but at reduced levels,” ANZ said.

The most-traded July copper contract on the Shanghai Futures Exchange closed up 2.2% to 73,350 yuan ($11,509.31) a tonne.

Three-month copper on the London Metal Exchange was down 0.3% at $10,192 a tonne by 0707 GMT, despite rising for most of the earlier Asian trading hours, pressured by a firmer dollar amid expectation of a robust U.S. inflation figure on Friday, which makes greenback-priced metals more expensive to holders of other currencies.

FUNDAMENTALS

* LME nickel climbed 0.9% to $18,060 a tonne and ShFE nickel jumped 4.9% to 132,310 yuan a tonne. A China-based trader said demand for nickel is “very good”.

* ShFE tin hit a record high of 209,990 yuan a tonne and LME tin rose to its highest since May 2011 of $30,800 a tonne.

* Earthquakes following a volcanic eruption in Goma, a city near Congo’s border with Rwanda, are disrupting exports of tin concentrate from mineral-rich North Kivu province, the International Tin Association said on Thursday.

* Yangshan copper premium SMM-CUYP-CN dropped to $35.50 a tonne, its lowest since Feb. 2016, indicating weakening demand for imported metal into China.

$1 = 6.3731 yuan Reporting by Mai Nguyen; Editing by Rashmi Aich and Sherry Jacob-Phillips

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