(Updates prices) By Peter Hobson LONDON, June 29 (Reuters) - Supply disruption in topproducer Chile, solid demand in top consumer China and dwindlingstockpiles kept copper prices near five-month highs on Monday. Benchmark copper on the London Metal Exchange (LME)was up 0.1% at $5,963 a tonne at 1615 GMT, close to Friday'speak of $6,006.
The metal used in power and construction has risen by about35% from March lows, recouping almost all ground lost during thefirst stages of the coronavirus outbreak.
However, supply and demand fundamentals suggest a fair pricefor copper around $5,500, with lower Chilean output offset byweak demand outside China, said independent analyst Robin Bhar.
CHILE: Chile's copper output could decline by 200,000tonnes, or 3.5% of 2019 production, as coronavirus cases rise,its mines minister said. CHINA: Profits at China's industrial companies rose for thefirst time in six months in May. Chinese factory activity islikely to have grown for a fourth month running June but thepace may be waning, a Reuters poll showed. MARKETS: Global stock markets rose despite the worldwidedeath toll from COVID-19 surpassing half a million on Sunday,with 10.1 million reported cases. STOCKS: On-warrant copper inventories in LME-registeredwarehouses fell by 2,450 tonnes to 112,850 tonnes, the lowestsince Jan 17. Stocks in Shanghai Futures Exchange (ShFE)warehouses, at 99,971 tonnes, are the lowest since January 2019. SPREAD: In a sign of tighter nearby supply, the discount forcash copper versus three-month metal on the LME fell to $5-$10from $30 earlier this month. TECHNICALS: LME copper could test Fibonacci and downtrendresistance around $6,075 a tonne and a break above this couldopen the way towards $6,343, said Reuters technical analyst WangTao. OTHER METALS: LME aluminium was up 0.6% at $1,610.50a tonne, zinc rose 0.9% to $2,057, nickel added1.1% to $12,825, lead gained 0.7% to $1,799 and tin was down 0.2% at $16,776. (Reporting by Peter HobsonAdditional reporting by Mai NguyenEditing by Mark Potter And David Goodman)
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