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METALS-Copper dips as Chile mine workers decide against strike

Kitco News

(Updates with official prices) By Peter Hobson LONDON, July 28 (Reuters) - Copper prices slipped on Tuesday after workers at a mine in Chile signed a new labour contract, removing the risk of a disruptive strike, while doubts about demand grew as rising coronavirus cases stoked concern about the global economy. Benchmark copper on the London Metal Exchange (LME) was down 0.4% at $6,393 a tonne in official trading, though still close to a two-year high of $6,633 reached on July 13.

WisdomTree analyst Nitesh Shah said prices, which are higher than before the COVID-19 pandemic, should continue to rise as demand recovers and coronavirus safety measures restrict production. But he said a spike in cases in many parts of the world raised questions whether demand growth will "be as vigorous as expected."

CHILE: Supervisors at Antofagasta's Centinela copper mine in Chile agreed to a new contract offer, the union president said. VIRUS: Nations in Asia introduced restrictions and Britain imposed a quarantine on travellers from Spain, as the world confronted the prospect of a second wave of coronavirus infections. DOLLAR: The U.S. dollar rose slightly from two-year lows, making metals pricier for buyers holding other currencies. FACTORIES: Export expectations in Germany rose in July, new orders rose last month for U.S.-made capital goods and profits at China's industrial firms increased in June. UNITED STATES: Senate Republicans on Monday proposed a $1 trillion coronavirus aid package. VACCINE: Moderna and Pfizer launched two 30,000-subject trials of coronavirus vaccines that could clear the way for regulatory approval and widespread use by the end of this year, the companies said. STOCKS/SPREAD: On-warrant copper stocks in LME-registered warehouses fell to 44,850 tonnes from around 250,000 tonnes two months ago. A premium for LME cash copper over three-month metal also points to tight nearby supply. OTHER METALS: LME aluminium was up 0.1% at $1,709 a tonne, zinc fell 1% to $2,215, nickel slipped 1.4% to $13,525, lead was unchanged at $1,850.50 and tin was 0.4% lower at $17,960. (Reporting by Peter Hobson; Additional reporting by Mai Nguyen; Editing by Edmund Blair and Barbara Lewis)

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