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METALS-Supply concerns keep London copper near $6,000 per tonne

Published 20/02/2017, 02:29 pm
© Reuters.  METALS-Supply concerns keep London copper near $6,000 per tonne
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* Giant Indonesia copper mine declares force majeure

* Officials at Chile mine put conditions on meeting with union

* Coming up: euro zone consumer confidence at 1500 GMT (Adds comment, detail; updates prices)

By Melanie Burton

MELBOURNE, Feb 20 (Reuters) - London copper edged up on Monday to stay near the key level of $6,000 per tonne, buoyed by supply worries after the world's second-biggest copper mine in Indonesia said it could not deliver promised shipments due to export permit issues.

The chief executive of miner Freeport-McMoran Inc's FCX.N Indonesian unit has resigned, the company said on Saturday, after the parent firm declared force majeure on copper concentrate shipments from its Grasberg mine in Papua. came as a strike at the world's top mine, Escondida in Chile, caused a second week of disruption. Escondida also declared force majeure last week.

"We expect the copper market to move into deficit in 2017 for the first time in six years, due to a combination of tightening supply and recovering developed world demand countering a more moderate rate of Chinese copper demand growth," Citi said in a report.

"We believe market tightness, and associated positive investor flows, will prompt copper prices to sustain a push above $6,000/T (in the second-half of 2017), with peaks of close to $7,000/T expected before year-end."

Three-month copper on the London Metal Exchange CMCU3 had risen 0.5 percent to $5,992 a tonne by 0253 GMT, paring losses from the previous session.

Prices hit $6,204 a week ago after Escondida declared force majeure, but industry sources said that smelters and fabricators were still amply supplied with metal. said on Sunday that company representatives would attend government-sponsored talks with striking workers on Monday as long as the union did not interfere with a shift change for non-unionized employees. was light with U.S. markets closed for a public holiday.

Shanghai Futures Exchange SCFcv1 copper was down 0.1 percent at 48,570 yuan ($7,073) a tonne.

Adding to supply concerns, Anglo American PLC AAL.L said it would temporarily suspend operations at its El Soldado copper mine in Chile after failing to receive regulatory approval for a redesign that would have helped keep output flowing. Philippine President Rodrigo Duterte said he would review a minister's order to close more than half the country's mines for environmental violations, following an outcry from affected producers. President Donald Trump's pledge to bring massive investments in U.S. infrastructure projects showed new signs of life on Friday, as leading Republican lawmakers said proposals from the administration could be in the offing. 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

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SPBcv1

Three month LME nickel

CMNI3

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SNIcv1

Three month LME tin

CMSN3

Most active ShFE tin

SSNcv1

($1 = 6.8671 Chinese yuan renminbi)

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