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METALS-Copper slides to 1-month low, Chinese imports drop

Published 09/03/2017, 04:38 am
© Reuters.  METALS-Copper slides to 1-month low, Chinese imports drop
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* LME copper stocks nearly double since Thursday

* Chinese copper imports tumble in February

* Mine disruptions in Chile, Indonesia lend support (Releads, adds closing prices)

By Pratima Desai

LONDON, March 8 (Reuters) - Copper prices slipped on Wednesday to a one-month low on selling triggered by a higher dollar, lower imports of the metal by top consumer China and rising inventories.

Benchmark copper CMCU3 on the London Metal Exchange was untraded at the close, but bid down 0.1 percent at $5,765 a tonne from an earlier session low at $5,755.50.

Growing expectations the U.S. Federal Reserve will hike rates next week have boosted the U.S. currency, which when it rises makes dollar-denominated metals more expensive for holders of other currencies, which could mean weaker demand. FRX/

"The Fed appears determined to raise rates next week," said

Quantitative Commodity Research analyst Peter Fertig. "But it may still depend on data, particularly the non-farm payrolls."

The U.S. monthly jobs report due on Friday includes non-farm payrolls, which are expected to rise by 190,000 in February. They come before the Fed meets on March 14-15. ECONUS

Copper imports to China -- accounting for nearly half of global consumption estimated at around 23 million tonnes this year -- totalled 340,000 tonnes in February, down 10.5 percent from January and down 19 percent from a year ago. remains key and we project moderate demand growth this year, mainly from the power sector," Julius Baer analyst Carsten Menke said in a note. "

Stocks of copper in LME approved warehouses at 288,525 tonnes have nearly doubled since last Thursday. Most of the deliveries were to warehouses in Asia, which traders say suggest the metal came from China.

However, mine disruptions in Chile, Peru and Indonesia are supporting prices. disruption is a strike at the Escondida copper mine, the world's largest, in Chile. 25 days (of strikes) we can expect lower production already by some 95,000 to 100,000 tonnes, which naturally will go on rising while the strike is prolonged," Chile's Mining Minister Aurora Williams said.

Aluminium CMAL3 ended up 0.1 percent at $1,877, zinc CMZN3 gained 0.6 percent to $2,710, lead CMPB3 added 0.8 percent to $2,251, tin CMSN3 was flat at $19,375 and nickel CMNI3 slid 4.2 percent to $10,200.

Traders said nickel's losses towards the end of the session were due to funds cutting bets on higher prices.

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

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(Editing by Jason Neely and Elaine Hardcastle)

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