Oct 19 (Reuters) – Copper prices rose on Tuesday as a weaker dollar made greenback-priced metals cheaper to holders of other currencies, while fears of supply disruption from a mine in the world’s No.2 producer Peru also supported the market.
Three-month copper on the London Metal Exchange CMCU3 rose 1% to $10,300 a tonne by 0155 GMT, while the most-traded November copper contract on the Shanghai Futures Exchange SCFcv1 was almost unchanged at 75,610 yuan ($11,783.32) a tonne.
The dollar languished near the bottom of its recent range against major peers, knocked back by weak U.S. factory data and on market wagers of faster normalisation of monetary policy in other countries.
A Peruvian community will block a key mining road used by MMG’s 1208.HK Las Bambas copper mine in protest after failed negotiations with the Andean nation’s government, a community leader told Reuters on Monday. Las Bambas is the country’s fourth largest copper mine.
FUNDAMENTALS
* LME cash copper was at a record high $1,103.50-a-tonne premium over the three-month contract MCU0-3, compared to $55 just a week earlier, indicating tight nearby inventories.
* On-warrant LME copper inventories MCUSTX-TOTAL plunged to their lowest since 1998 of 14,150 tonnes on Friday before rising to 21,050 tonnes, with one entity controlling between 50% and 79% of LME copper warrants 0#LME-WHL, LME data showed.
* One party held more than 90% of available LME lead stocks and short-term futures 0#LME-WHT.
* LME aluminium CMAL3 rose 1% to $3,198 a tonne, nickel CMNI3 advanced 0.9% to $20,175 a tonne, zinc CMZN3 increased 1.2% to $3,740 a tonne, while ShFE aluminium SAFcv1 was up 0.4% at 24,400 yuan a tonne.
* ShFE lead SPBcv1 rose as much as 2.7% to 15,990 yuan a tonne, its highest since Aug. 4, nickel SNIcv1 advanced 0.9% to 151,000 yuan a tonne and tin SSNcv1 increased 1.3% to 289,800 yuan a tonne.
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(Reporting by Mai Nguyen in Hanoi; Editing by Subhranshu Sahu)
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