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Shanghai copper climbs over 5-month peak on Chile supply risks

Kitco News

(Updates prices)

By Mai Nguyen SINGAPORE, June 29 (Reuters) - Shanghai copper prices on Monday hit a more than five-month high on supply risks in top producer Chile, while a weaker U.S. dollar boosted prices of the red metal in London.

The most-traded August copper contract on the Shanghai Futures Exchange jumped as much as 1.7% to 48,590 yuan ($6,866.39) a tonne, its highest level since Jan. 22, before closing at 48,380 yuan a tonne. Three-month copper on the London Metal Exchange rose 0.3% to $5,972.50 a tonne by 0707 GMT.

"The metal is still keeping an eye on currencies as the main driver. There are supply issues looming in Chile with unions getting more vocal about their working conditions," said Anna Stablum, a commodities broker at Marex Spectron. Chile's copper output could decline 200,000 tonnes due to the new coronavirus, or 3.5% of 2019 production, its mines minister said, as state-run miner Codelco reported its fourth death. A weaker U.S. dollar makes greenback-denominated metals cheaper for buyers using other currencies.

Stablum added that a shortage of scrap supply in China would continue to keep the refined market tight. However, as the number of COVID-19 cases surpasses 10 million, concerns remained over a steady global economic recovery and demand for metals.


* COPPER: The spread between the three-month LME and ShFE copper contracts surged to 1,798 yuan a tonne, its highest since April 13.

* SCRAP: China's copper scrap imports in May dropped 60.2% year-on-year to 69,496 tonnes, customs data showed.

* OTHER PRICES: LME aluminium rose 0.3% to $1,607 a tonne and nickel rose 0.6% to $12,765 a tonne. In Shanghai, aluminium climbed 1.1% to 13,775 yuan a tonne, while zinc fell 0.7% to 16,625 yuan a tonne.

* For the top stories in metals and other news, click or ($1 = 7.0765 yuan) (Reporting by Mai Nguyen; Editing by Sherry Jacob-Phillips and Rashmi Aich)


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