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METALS-Copper prices edge up on Indonesia, Chile supply worries

Published 17/02/2017, 02:16 pm
© Reuters.  METALS-Copper prices edge up on Indonesia, Chile supply worries
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* Worries over supply from Chile, Indonesia buoy copper

* Metal supported above $6,000 per tonne

* Nickel prices ease, but still bolstered by supply concerns (Adds comment, details; updates prices)

By James Regan

SYDNEY, Feb 17 (Reuters) - Copper prices climbed on Friday following overnight losses, supported above the key $6,000-mark by major supply restrictions at the world's two biggest mines in Chile and Indonesia.

Three-month copper on the London Metal Exchange CMCU3 was up around 0.8 percent at $6,005 at 0245 GMT, after earlier climbing as far $6,038. It fell over 1 percent the session before.

Concerns over supply swept the metal to a 21-month high of $6,204 on Monday.

The positions of BHP Billiton (LON:BLT) BHP.AX and the striking union at its Escondida copper mine in Chile, the world's largest, remain distant even as the two parties agreed this week to return to the table. work has stopped at Freeport-McMoRan Inc's FCX.N giant copper mine in Indonesia and its workers are planning a demonstration against the government's move last month that halted exports of copper concentrate, a union said. is still finding support from the strike at BHP and from the Grasberg hold up," said a trader in Perth, declining to be identified as he was not authorised to speak with media.

The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 on Friday slipped around 0.57 percent to 48,690 yuan ($7,095) a tonne.

Elsewhere, nickel recoiled from two-month highs struck overnight as some investors took profits, traders said.

They added that supply worries would also continue to bolster nickel prices.

The Philippines this week ordered the cancellation of 75 mineral production-sharing agreements as developing them would threaten water supplies. That came after the closure or suspension of 28 of the country's 41 mines. LME nickel CMNI3 was down 0.03 percent at $11,030 a tonne after rising 1.4 percent overnight to its strongest since Dec. 12. Roughly two-thirds of global nickel supply is used to make stainless steel.

LME aluminium CMAL3 was flat at $1,899 a tonne, while zinc CMZN3 was up 0.24 percent at $2,865.

In Shanghai, lead SPBcv1 dropped over 2 percent, while nickel SNIcv1 was off about 0.9 percent.

PRICES

Three month LME copper

CMCU3

Most active ShFE copper

SCFcv1

Three month LME aluminium

CMAL3

Most active ShFE aluminium

SAFcv1

Three month LME zinc

CMZN3

Most active ShFE zinc

SZNcv1

Three month LME lead

CMPB3

Most active ShFE lead

SPBcv1

Three month LME nickel

CMNI3

Most active ShFE nickel

SNIcv1

Three month LME tin

CMSN3

Most active ShFE tin

SSNcv1

($1 = 6.8623 Chinese yuan renminbi)

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