METALS-London copper edges up on demand view, tight mine supply
Updates prices, adds quotes
By Mai Nguyen
HANOI, March 17 (Reuters) - London copper prices rose on Wednesday as a bright demand outlook and supply disruptions in some South American mines offset pressure from rising LME exchange inventories.
Three-month copper on the London Metal Exchange CMCU3 rose 0.7% to $9,020 a tonne by 0552 GMT, while the most-traded May copper contract on the Shanghai Futures Exchange SCFcv1 fell 0.8% to 66,870 yuan ($10,284.53) a tonne.
"Fundamentals remain healthy, especially with the supply and logistics disruptions in South America, while demand outlook looks promising based on positive macro data," said a Singapore-based copper analyst.
Data from top consumer China showed stronger-than-expected industrial growth in the first two months of 2021, while new lending in the country fell less than expected in February. nL1N2LD02Z nL4N2L62P4
Meanwhile, tight copper concentrate supply remained a concern for downstream copper players. nL2N2L31KM
"However, risk sentiment is definitely dampened with the rising U.S. Treasury yield and a stronger U.S. dollar in the short term, which definitely weighed on copper prices," the analyst said.
* The Yangshan copper premium SMM-CUYP-CN fell to $67 a tonne, its lowest since Jan. 13, indicating weakening demand for imported copper into China.
* LME refined copper inventories MCUSTX-TOTAL jumped 12% to 103,900 tonnes in one session, their highest since Jan. 8, while stockpiles in ShFE warehouses CU-STX-SGH rose to 171,794 tonnes, a level unseen since September.
* Chilean miner Antofagasta ANTO.L expects to reach a pay deal with its workers this month, as it extended wage talks at its Los Pelambres mine in an effort to avoid a strike. nL1N2LE0DS nL1N2LE126
* LME aluminium CMAL3 fell 0.2% to $2,199 a tonne, nickel CMNI3 declined 0.6% to $16,050 a tonne while zinc CMZN3 rose 0.2% to $2,816.50 a tonne.
* ShFE aluminium SAFcv1 shed 0.8% to 17,635 yuan a tonne, nickel SNIcv1 was down 0.8% to 120,360 yuan a tonne and zinc SZNcv1 dropped 0.7% to 21,700 yuan a tonne.
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(Reporting by Mai Nguyen; Editing by Devika Syamnath)
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