(Updates prices) By Eric Onstad LONDON, July 14 (Reuters) - Copper prices slipped on Tuesdayafter a steep rally on worries about rising coronavirus casesand friction between the United States and top metals consumerChina. Copper had soared about 50% from its 45-month lows touchedin March to a two-year peak hit on Monday, largely on supplyconcerns from the biggest producer Chile. But copper stumbled along with stock markets and oil afterthe most populous U.S. state California imposed freshcoronavirus restrictions and a top U.S diplomat said there wasroom for sanctions against Chinese officials and enterprisesinvolved in coercion in the South China Sea. "It's a long overdue reality check today that we've had instore for a couple of weeks now. I've been absolutely blown awayby just how quickly copper has rebounded," said Kieran Clancy,assistant commodities economist at Capital Economics. "It's just been rocketing and I think some of that was basedon hopes and not reality. There are so many things priced intothe copper market that haven't actually happened yet, not leastof which being some of the supply risks in Latin America." Chile's copper miners have largely maintained output,although state-owned Codelco said on Monday it registered atotal 3,215 COVID-19 infections and nine deaths. Three-month copper on the London Metal Exchange wasdown 1% at $6,507 a tonne by 1600 GMT.
FUNDAMENTALS * CHILE STRIKE: Supervisors at Antofagasta Minerals' Centinela copper mine in Chile have voted in favour ofstrike action, pending mediation.* COPPER SPREAD: The premium of LME cash copper over thethree month contract rose to $9 a tonne by Monday'sclose, the highest since May last year and compared to adiscount of $30 about a month ago, indicating tight supplies inLME warehouses. It was last at a premium of $4.* PRICES: LME aluminium lost 0.3% to $1,684.50 atonne, zinc dropped 3.1% to $2,191.50, nickel fell 0.9% to $13,590, lead shed 1.7% to $1,849 and tin gave up 0.9% to $17,285. * For the top stories in metals and other news, click or (Additional reporting by Mai Nguyen in Singapore; editing byEmelia Sithole-Matarise, Louise Heavens and Nick Macfie)
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