RTRS:METALS-Copper gains as supply fears offset global economy woes
* LME copper gains as much as 0.9 pct to $9,012
* Indonesia, Peru copper strikes on the cards
* Coming up: Germany Industrial output; 1000 GMT
By Michael Taylor
JAKARTA, Sept 7 (Reuters) - Copper prices gained almost 1
percent on Wednesday after falling for three consecutive days as
a series of labour disputes at mines threatened production and
helped offset jitters about the health of the global economy.
Three-month copper on the London Metal Exchange
climbed 0.8 percent to $9,005 a tonne by 0456 GMT, after falling
in the previous session to close 0.3 percent lower.
Analysts say labour disputes at copper mines in Indonesia
and Peru were supporting the red metal, used in power and
construction.
"Up modestly," said David Thurtell, a Singapore-based metals
analyst at Citigroup. "There are looming strikes at copper
mines, but the macro side is likely to cap the complex for some
time."
Freeport McMoRan Copper & Gold's Indonesia mine
workers are set to strike from Sept. 15 to Oct. 15 unless the
firm meets their demands for a pay rise, a union official told
Reuters on Tuesday.
Workers at Peru's third biggest copper mine, Cerro Verde,
are due to launch a 48-hour strike on Wednesday for higher pay.
Chinese imports and inflationary data due on Friday could
offer further market direction, Thurtell added.
Analysts also say that options helped push copper over the
dominant strike price of $9,000, as investors approach the
month's options declaration deadline later in early London
trading hours.
The most-active November copper contract on the Shanghai
Futures Exchange SCFc3 traded 0.7 percent higher at 67,450
yuan per tonne, after trading little-changed in the previous
session.
Equity markets also provided some support, with the Nikkei
average climbing 2 percent on bargain-hunting after European
debt fears sent it tumbling a day earlier to a 2-1/2 year
closing low.
Despite signs that the economic recovery in the United
States is faltering, a top Federal Reserve official who opposed
the central bank's move last month to ease monetary policy
signaled on Tuesday that he may balk again if fellow
policy-makers opt for still more stimulus this month.
President Barack Obama, facing waning confidence among
Americans in his economic stewardship, plans to lay out a $300
billion job-creation package on Thursday, CNN reported, citing
Democratic sources.
"Copper does look up on the back of a bit of weakness in the
dollar," Jonathan Barratt, managing director of Commodity
Broking Services said. "Over the last couple of days we came
under pressure based on economic concerns ... but the tightness
is certainly still out there when you look down the curve."
A weaker dollar makes commodities more attractive for
holders of other currencies.
Further clues about business conditions in the world's top
economy may come from the release of the Federal Reserve's Beige
Book due on Wednesday. nFXDIARY The anecdotal narrative of
business and economic conditions across the United States is
likely to describe an anemic U.S. labour market.
Most other metals were trading slightly higher, with
aluminium at $2,400 from $2,380 on Tuesday,
battery-material lead at $2,419.75 versus $2,388 and
nickel at $21,089 from $20,675.
Global nickel demand is forecast to rise 4-5 percent a year,
the chief executive at French mining group Eramet
said.
Tin traded nearly unchanged at $23,850 from $23,875,
while zinc , used in galvanizing, was at $2,211.25 a
tonne versus $2,190 at Tuesday's close.
Base metals prices at 0523 GMT
Metal Last Change Pct Move YTD pct chg
LME Cu 8999.00 66.00 +0.74 -6.26
SHFE CU FUT NOV1 67450 450 +0.67 -6.12
LME Alum 2400.00 20.00 +0.84 -2.83
SHFE AL FUT NOV1 17400 105 +0.61 3.33
HG COPPER DEC1 408.25 2.65 +0.65 -8.04
LME Zinc 2207.00 17.00 +0.78 -10.07
SHFE ZN FUT NOV1 17035 180 +1.07 -12.53
LME Nickel 21050.00 375.00 +1.81 -14.95
LME Lead 2420.00 32.00 +1.34 -5.10
SHFE PB FUT SEP1 16400 150 +0.92 -10.63
LME Tin 23850.00 -25.00 -0.10 -11.34
LME/Shanghai arb -156
Shanghai and COMEX contracts show most active months
^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE
third month