RTRS:METALS-Copper up on technicals, Bernanke's speech eyed
* LME copper range-bound within $8,600-$9,000
* Market awaits U.S. policy direction speech by Bernanke on
Friday
* Collahuasi copper mine's workers plan strike on Sept. 2
* Investors bet on no near-term tightening in China
(Updates prices, adds quotes and details)
By Carrie Ho
SHANGHAI, Aug 22 (Reuters) - Copper inched up but stayed
range-bound on Monday as investors focused on potential supply
disruptions in Chile and a general positive demand outlook,
though worries about a global economic slowdown continued to
weigh on sentiment.
Investors are eyeing the outcome of a U.S. Federal Reserve
meeting on Friday for hints on how policymakers plan to handle
the turmoil in financial markets.
Three-month copper on the London Metal Exchange
edged up 0.3 percent to $8,849 a tonne by 0358 GMT, after rising
0.6 percent in the last session.
The most-active November copper contract on the Shanghai
Futures Exchange SCFc3 rose 0.3 percent to 66,550 yuan per
tonne, after falling 0.5 percent in the last session.
"Investors are making safe range-bound plays today with a
wait-and-see attitude ahead of Bernanke's speech on Friday,"
CIFCO Futures analyst Zhou Jie said.
Market players are awaiting the speech from U.S. Federal
Reserve Chairman Ben Bernanke on Friday at a lodge in Wyoming's
Jackson Hole, where policymakers and academics meet once a year
to talk shop.
"The fact that equities' performance is slightly weak will
limit price rises. But Chinese investors are also cheered by
hopes of no interest rate rises here in light of the weak state
of U.S. and European economies," Zhou added.
Traders have put LME copper's current range at between
$8,600-$9,000, and ShFE Copper at between 65,700-68,500 yuan.
More supply disruption may be in the pipeline with the
labour union at the world's No. 3 copper mine, Chile's
Collahuasi, threatening to stage a one-day stoppage on Sept. 2
if the mine's operator does not hire back workers fired after a
previous disruption.
"Chinese copper demand is steady tight now. The scheduled
Chilean strike may push up prices, but we'll have to see how it
progresses," Zhou said.
Some analysts have slightly revised demand growth forecast
for copper given the deteriorating global economic outlook but
maintain that there will be an upside to prices from current
levels.
Some European banks were forced to pay more for short-term
loans on Friday as anxiety about their exposure to debt problems
in Europe stayed high.
Germany strongly rejected mounting calls for the euro zone
to issue joint debt at the weekend, but signaled it was open for
the bloc to move towards a form of fiscal union, with the
finance minister saying he personally supported a European
counterpart.
The "Black Death" of debt crisis across the Euro zone will
hurt China by sapping demand for exports, although Beijing's
relatively small holdings of euro assets will limit any damage
to foreign exchange reserves, the nation's top official
newspaper said on Monday.
Chinese Vice Premier Wang Qishan reaffirmed Beijing's
"prudent" monetary policy in remarks published on Monday.
Despite Beijing's stance, investors have noticed a slower pace
of tightening.
The Bank of Japan will consider easing monetary policy
further, possibly at an emergency meeting before next month's
rate review, if further rises in the yen push down Tokyo stock
prices enough to hit business sentiment.
Terramin Australia said it expects to resume full
operations at its Angas lead and zinc mining operations by Aug.
31 as it make repairs following an electrical incident last week
that forced it to suspend milling work.
China plans to tighten controls over production of recycled
lead and phase out plants that can produce less than 30,000
tonnes a year before 2013, a draft of the policy showed on
Thursday.
Base metals prices at 0358 GMT
Metal Last Change Pct Move YTD pct chg
LME Cu 8849.00 24.00 +0.27 -7.82
SHFE CU FUT NOV1 66550 200 +0.30 -7.38
LME Alum 2360.00 5.00 +0.21 -4.45
SHFE AL FUT NOV1 17230 -20 -0.12 2.32
HG COPPER SEP1 399.35 1.00 +0.25 -10.05
LME Zinc 2196.00 3.00 +0.14 -10.51
SHFE ZN FUT NOV1 16915 30 +0.18 -13.15
LME Nickel 21350.00 150.00 +0.71 -13.74
LME Lead 2318.00 16.00 +0.70 -9.10
SHFE PB FUT 16680 80 +0.48 -9.10
LME Tin 23000.00 200.00 +0.88 -14.50
LME/Shanghai arb -332
Shanghai and COMEX contracts show most active months
^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE
third month
