(Updates with closing prices, Malaysia bauxite) By Peter Hobson LONDON, Feb 18 (Reuters) - Copper prices rose on Monday onconcerns that supply will tighten after a court ruling castdoubt on the future of a smelter in India and a large mine inIndonesia said its export permit had expired.
Better-than-expected Chinese lending data on Fridaymeanwhile suggested that demand from the world's biggestconsumer of metals will remain strong. Benchmark copper on the London Metal Exchange (LME)closed 1.4 percent higher at $6,275 per tonne, near a two-monthhigh of $6,289.50 reached on Feb. 7.
Copper stockpiles available to the market in LME-registeredwarehouses are near 13-year lows and LME timespreads have tightened rapidly, suggesting a shortage of nearbymetal. .
But there is little sign of a serious supply shortfall,Deutsche Bank analyst Nick Snowdon said, adding that the outlookfor U.S.-China trade negotiations and global economic growthremained the most important drivers of copper prices. Copper fell to a 1-1/2 year low of $5,725 in January.
VEDANTA: India's Supreme Court set aside an order by anenvironmental court that had cleared the way for the reopeningof Vedanta's southern Indian copper smelter. GRASBERG: PT Freeport Indonesia, which operates the Grasbergmine, one of the world's largest, said its copper concentrateexport permit expired on Feb. 15 and it had not receivedrecommendations from the mining ministry that will help it toobtain a new one. BAUXITE MINING: The Malaysian government said it would notextend its moratorium on bauxite mining which ends on March 31due to strong demand for the ore, state news agency Bernamareported on Monday, quoting the water, land and naturalresources minister. Bauxite is used in the production of aluminium. TRADE WAR: The United States and China will resume tradetalks next week in Washington, but U.S. President Donald Trumprepeated on Friday that he may extend a March 1 deadline for adeal. TARIFFS: The U.S. Commerce Department sent a report onSunday to President Trump that could unleash steep tariffs onimported cars and auto parts. COPPER POSITIONING: Speculative investors are betting onlower LME copper prices, with a small net short as of lastThursday, according to brokers Marex Spectron.
COPPER SPREAD: Cash copper has flipped to a $35 premiumagainst the three-month contract from a $15 discount a week ago , suggesting a shortfall of nearby supply.
LME STOCKS: On-warrant copper stocks in LME warehouses at 73,850 tonnes are down from about 130,000tones in January. One entity holds between 50 and 79 percent ofwarrants. METALS PRICES: LME aluminium was down 0.2 percent to$1,856 a tonne, zinc ended 0.6 percent lower at $2,638,nickel rose 0.4 percent to $12,455, lead fell2.3 percent to $2,030 and tin finished 0.4 percent lowerat $21,110. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Peter HobsonAdditional reporting by Tom DalyEditing by David Goodman and Jan Harvey)
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