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METALS-Weaker dollar, supply worries underpin copper
July 12, 2017 / 3:46 AM / in 5 months

METALS-Weaker dollar, supply worries underpin copper

 (Adds comment, detail, updates prices)
    By Melanie Burton
    SYDNEY, July 12 (Reuters) - Copper prices climbed in Asia to
the highest in more than one week on Wednesday amid a weaker
U.S. dollar and concerns about industrial action that could
further crimp mine supply. 
    The dollar fell to a more than one-week low against a basket
of major currencies on Tuesday, after U.S. President Donald
Trump's eldest son released an email chain citing Russian
support for his father before last year's U.S. election.
    Meanwhile, workers voted to approve a strike at a mine in
Chile, following industrial disputes in Indonesia and at the
world's biggest copper mine, also in Chile, earlier in the year,
that whittled into copper supply.
    "The short term fundamentals look supportive on the price
where it is, but the more we move into the fall and the winter,
we just don't think that the pace of the Chinese economy can
sustain," said analyst Dane Davis at Barclays in New York.  
    "With the Chinese engaging in the policy of credit
tightening and the real-estate sector starting to cool off, the
evidence suggests you have a weakening in the market. Not a
collapse, because the supply side is too tight, but a return to
price around $2.50 (per pound, $5,500/tonne)." 
    A weaker dollar typically draws interest for U.S.
dollar-denominated commodities such as copper from investors
outside the United States using other currencies.
    * LME COPPER: Three-month copper on the LME was up
0.5 percent at $5,902 a tonne by 0316 GMT, building on overnight
gains in the more active London sessions.
    * SHFE COPPER: The most-traded copper contract on the
Shanghai Futures Exchange was 1.1 percent higher at
47,350 yuan ($6,962.21) a tonne.
    * STEEL: SHFE zinc and nickel rallied more
than 2 percent, tracking an uplift in steel amid higher profits
at China's steel makers following closures of outdated capacity.

    * STRIKE:  Workers at the Zaldivar copper mine in Chile,
owned by Antofagasta and Barrick Gold Corp,
voted to approve a strike on Monday after talks with the company
failed, a union leader told Reuters.
    * FREEPORT: Indonesia says it will invite the head of mining
giant Freeport McMoRan Inc to Jakarta this month to try
to settle a long-running dispute over a new deal to operate the
world's second-largest copper mine.
     * CHINA CAR SALES: Vehicle sales rebounded in June, shaking
off weakness in the previous two months.
    * Asian shares steadied on Wednesday after Wall Street
managed to weather a fresh twist in the political controversy
surrounding U.S. President Donald Trump's administration, while
investors looked ahead to Federal Reserve Chair Janet Yellen's
comments later in the day.    
 Three month LME copper                         5903.5
 Most active ShFE copper                         47320
 Three month LME aluminium                      1902.5
 Most active ShFE                                14240
 Three month LME zinc                           2831.5
 Most active ShFE zinc                           23310
 Three month LME lead                           2314.5
 Most active ShFE lead                           17910
 Three month LME nickel                           9210
 Most active ShFE nickel                         75690
 Three month LME tin                             19865
 Most active ShFE tin                           145120
 LME/SHFE COPPER            LMESHFCUc3          594.22
 LME/SHFE ALUMINIUM         LMESHFALc3         -780.18
 LME/SHFE ZINC              LMESHFZNc3           356.3
 LME/SHFE LEAD              LMESHFPBc3        -1313.51
 LME/SHFE NICKEL            LMESHFNIc3         2152.61
($1 = 6.8010 Chinese yuan)

 (Reporting by James Regan; Editing by Joseph Radford and Biju

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