July 13, 2020 / 5:47 AM / a month ago

METALS-Copper hits over 2-year high on Chile mine strike, China flood worries

(Updates prices)

By Mai Nguyen

SINGAPORE, July 13 (Reuters) - Shanghai copper hit its highest level in more than two years on Monday, while London copper scaled a 24-month high on supply worries, on a potential mine strike in Chile and flooding in China.

The most-traded August copper contract on the Shanghai Futures Exchange ended up 4.7% at 52,880 yuan ($7,554.18) a tonne, its highest close since June 19, 2018.

Three-month copper on the London Metal Exchange hit its highest since July 2018 at $6,633 a tonne and was trading up 2.6% at $6,577.50 a tonne at 0713 GMT.

Workers at Antofagasta Minerals's Zaldivar copper mine in Chile voted in favour of strike action set for July 15, pending government mediation, after they rejected a pay offer, the mine's union said on Friday.

"Macro wise, we're not supposed to be here.. but it's a fundamental news so it'll outweigh any bullish macro news. I'll sell into this," said a metals trader.

Flooding in China also raised supply concerns. The country's Jiangxi province, a major copper cathode producing region, issued its highest flood warning on Saturday as torrential rain battered much of the country.

FUNDAMENTALS

* COPPER STOCKS: ShFE copper inventories CU-STX-SGH rose 20.1% in a week to 137,336 tonnes on Friday, but were still 64% lower than its 2020 peak in March.

* SHANGHAI PRICES: Aluminium hit near a 26-month high at 14,860 yuan a tonne while zinc touched a 5-1/2-month high at 18,195 yuan a tonne. Lead scaled to its eight-month high at 15,545 yuan a tonne.

* LME PRICES: Aluminium rose to its four-month high at $1,705 a tonne, nickel hit a 5-1/2-month peak of $13,650 a tonne and zinc touched its highest since Feb. 6 at $2,232.50 a tonne.

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$1 = 7.0001 yuan Reporting by Mai Nguyen; Editing by Shailesh Kuber and Rashmi Aich

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