(Updates with closing prices)By Peter HobsonLONDON, June 25 (Reuters) - Copper prices reached aone-month high on Tuesday as a strike at a major mine in Chileunderlined a supply shortfall, although investors were on edgeahead of U.S.-China trade talks later this week.
Benchmark copper on the London Metal Exchange (LME)ended up 1.4% at $6,042 a tonne after touching $6,051.50, thehighest since May 21.
But prices remain far from April's peak of $6,608.50, havingbeen pushed lower by a deepening rift between Washington andBeijing that investors fear will weaken economic growth anddemand for metals.
"Fundamentally for copper things are starting to look moreconstructive," ING analyst Warren Patterson said."We have this strike in Chile. There are growing concernsthat the copper concentrate balance is tightening. Refiningcharges in China have fallen, signalling a tightening in themarket, and Chinese copper premiums have started to make acomeback."
TRADE WAR: U.S. President Donald Trump views this week'smeeting with China's Xi Jinping as a chance to see where Beijingstands on the two countries' trade war, and is "comfortable withany outcome" from the talks, a senior U.S. official said. DOLLAR: The dollar touched its weakest since March, helpingdollar-priced metals by making them cheaper for buyers withother currencies.U.S. ECONOMY: U.S. consumer confidence fell to a 21-monthlow in June. STRIKE: Workers at Codelco's Chuquicamata copper mine inChile rejected the company's latest offer over the weekend,having been on strike since mid-June. DEFICIT: The global world refined copper market showed a51,000 tonnes deficit in March after a 72,000 tonnes surplus inFebruary, the International Copper Study Group (ICSG) said.
For January-March, the market was in a 32,000 tonnesdeficit, the ICSG said. CHINA PREMIUMS: Chinese Yangshan import premiums have risento $59.50 from a two-year low of $47 last month. CHINA IMPORTS: China's refined copper cathode imports fell29% year-on-year in May to 243,056 tonnes and were also down 15%from the previous month. STOCKS: Copper stockpiles in Shanghai Futures Exchange(ShFE) warehouses have fallen to 134,747 tonnes from more than260,000 tonnes at the end of March. Stocks in LME-registered warehouses, however, have climbedto 242,875 tonnes from a low of 111,125 tonnes in March. LEAD: LME lead finished up 1.4% at $1,939.50 a tonneas China's top producer Henan Yuguang Gold and Lead Co shut down one production line at a lead smelter inJiyuan for a 30-day maintenance that will affect some 10,000tonnes in output. TIN: LME tin ended 0.1% lower at $19,050, with thepremium for cash metal over the three-month contract diving to$15 from more than $200 earlier this month, pointing to moreplentiful nearby supply. OTHER METALS: LME aluminium rose 1.2% to $1,814 atonne, zinc gained 2.1% to $2,543 and nickel closed up 1.3% at $12,300.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Peter Hobson; Additional reporting by Mai Nguyen;Editing by Alexander Smith and Mark Heinrich)