Copper slips after six-day rally, but eyes best week since Feb

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MANILA, June 8 (Reuters) – London copper retreated on Friday after a six-day rally that pushed the metal to its strongest in 4-1/2 years in the previous session, amid worries over potential supply disruptions at the world’s biggest copper mine where wage talks are underway. The union of workers at the BHP-operated Escondida copper mine in Chile last week kicked off labor negotiations with a contract proposal that includes a bonus of about $34,000 per worker, sparking fears of a possible strike. Three-month copper on the London Metal Exchange was down 1.1 percent at $7,248 a tonne by 0133 GMT. The contract touched $7,348 on Thursday, its loftiest since January 2014, and has risen 5 percent so far this week, the most since mid-February. * SHANGHAI COPPER: The most-traded August copper contract on the Shanghai Futures Exchange was little changed at 53,980 yuan ($8,437) a tonne. * CHINA DATA: China is scheduled to release its trade data later in the day, with exports and imports expected to have grown at a firm pace in May but slightly slower than the previous month. * CHILE OUTPUT: Chile’s copper production in April jumped 6.4 percent from the same month a year earlier, Chilean copper commission Cochilco said, boosted by increased output at large, privately held mines in the world’s top copper producer. * DOLLAR: The dollar wallowed near a three-week low against peers as U.S. Treasury yields fell sharply, while the euro’s recovery remained intact amid expectations that the European Central Bank would begin unwinding it stimulus programme. * TRUMP: Leaders of the Group of Seven rich nations headed for a summit in Canada more divided than at any time in the group’s 42-year history, as U.S. President Donald Trump’s “America First” policies risk causing a global trade war and deep diplomatic schisms. * U.S. DATA: The number of Americans filing for unemployment benefits unexpectedly fell last week, pointing to a further tightening in labor market conditions. * OTHER METALS: Other metals also slipped, with LME lead down 1.9 percent at $2,487 a tonne texmetals.com and zinc dropping 1 percent to $3,152. DATA AHEAD (GMT) * China Trade data May 0600 Germany Industrial output Apr 0600 Germany Trade data Apr 0645 France Industrial output Apr 1400 U.S. Wholesale sales Apr * No exact timing BASE METALS PRICES 0133 GMT Three month LME copper 7248 Most active ShFE copper 53980 Three month LME aluminium 2292 Most active ShFE aluminium 14865 Three month LME zinc 3152 Most active ShFE zinc 24340 Three month LME lead 2487 Most active ShFE lead 20365 Three month LME nickel 15440 Most active ShFE nickel 115860 Three month LME tin 21250 Most active ShFE tin 152420 BASE METALS ARBITRAGE LME/SHFE COPPER LMESHFCUc3 -77.08 LME/SHFE ALUMINIUM LMESHFALc3 -2127.77 LME/SHFE ZINC LMESHFZNc3 198.83 LME/SHFE LEAD LMESHFPBc3 477.4 LME/SHFE NICKEL LMESHFNIc3 -1072.67 ($1 = 6.3979 Chinese yuan) (Reporting by Manolo Serapio Jr.; editing by Richard Pullin)

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Last modified: July 8, 2018

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