June 7, 2018 / 5:23 AM / 13 days ago

METALS-London copper hits 2018 high on Chile supply fears

 (Adds Shanghai closing prices, updates London prices)
    BEIJING, June 7 (Reuters) - London copper prices rose to a
2018 high on Thursday, gaining ground for a sixth session on
concerns over disruption at the Escondida mine in Chile.
    Three-month copper on the London Metal Exchange hit
$7,287 a tonne, its highest since Dec. 29, 2017, and was trading
at $7,276 at 0707 GMT. It is up 6.3 percent so far this month. 
    Investors "continue to fret about potential supply-side
disruptions" after union leaders at Escondida, which is operated
by BHP, submitted wage demands, sparking fears
of a possible strike, ANZ wrote in a note.
    A weaker dollar index, which makes dollar-denominated
metals cheaper for holders of other currencies, also lent
support to prices.
            
    FUNDAMENTALS
    * SHFE COPPER: The most-traded July copper contract on the
Shanghai Futures Exchange rose for a fifth straight
session, ending 2.2 percent higher at 53,930 yuan ($8,440.41) a
tonne, its highest close since Feb. 27. 
    * PREMIUMS: China copper premiums CU-BPCIF-SHMET have held
steady at $77.5 a tonne over the past month, indicating there
has been no heightened shortage of physical metal in the world's
top copper consumer.
    * POSITIONS: Long positions among futures brokerages in the
July ShFE copper contract increased by 2,220 lots on Thursday,
while short positions were up by 1,262 lots for July and 12,277
lots for August.
    * ALUMINIUM: Shanghai aluminium ended up 1.9
percent at 15,020 yuan a tonne, its highest close since April
23. London aluminium recovered from an early dip to
trade 0.2 percent higher.
    * LME CONTRACTS: The London Metal Exchange (LME) plans to
launch around 15 new contracts next January, including
cash-settled cobalt and hot-rolled coil steel contracts, an
executive said on Wednesday.
    * SCOTIA: Canada's Bank of Nova Scotia (Scotiabank)
is limiting lending by its ScotiaMocatta metals unit as it
embarks on a radical restructuring likely to halve the size of
the business, sources familiar with the matter said.

    * CHILE: Chile's finance minister on Wednesday described as
"imprudent" the appointment by lithium miner SQM of its
former Chairman Julio Ponce as a strategic adviser, in light of
an agreement with the state that he distance himself from the
firm.    
   * For the top stories in metals and other news, click       
 or     
        
    MARKETS NEWS    
    * Asian shares rose to a fresh 11-week high on Thursday,
supported by sound economic fundamentals, while expectations the
European Central Bank (ECB) may soon start to wind down its
stimulus boosted the euro and global bond yields.   
    PRICES   
 BASE METALS PRICES                      0707 GMT
 Three month LME copper                      7276
 Most active ShFE copper                    53920
 Three month LME aluminium                   2345
 Most active ShFE                           15010
 aluminium                               
 Three month LME zinc                      3175.5
 Most active ShFE zinc                      24450
 Three month LME lead                        2533
 Most active ShFE lead                      20640
 Three month LME nickel                     15710
 Most active ShFE nickel                   118010
 Three month LME tin                        21015
 Most active ShFE tin                      153350
                                                 
 BASE METALS ARBITRAGE                           
 LME/SHFE COPPER            LMESHFCUc3      -3.65
 LME/SHFE ALUMINIUM         LMESHFALc3   -2355.15
 LME/SHFE ZINC              LMESHFZNc3     184.02
 LME/SHFE LEAD              LMESHFPBc3     422.44
 LME/SHFE NICKEL            LMESHFNIc3    -970.78
    
    ($1 = 6.3895 Chinese yuan)

    
 (Reporting by Tom Daly; Editing by Richard Pullin and Sherry
Jacob-Phillips)
  
 
 
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