METALS-Shanghai copper scales 6-month high on Chile supply risk

(Updates prices)

SINGAPORE, July 2 (Reuters) - Shanghai copper prices touched a more than six-month peak on Thursday, supported by mounting supply risks in top producer Chile and upbeat manufacturing data in major economies.

The most-traded August copper contract on the Shanghai Futures Exchange touched 49,570 yuan ($7,015.98) a tonne, its highest since Dec. 30, 2019, before easing to close 0.6% higher at 49,410 yuan a tonne.

Three-month copper on the London Metal Exchange advanced 0.7% to $6,102 a tonne, after climbing as much as 0.9% to $6,118 a tonne earlier in the session, its highest since Jan. 22.

Manufacturing activity rebounded in the United States in June, while the factory sector in Germany, Europe’s largest economy, contracted at a slower pace and top copper consumer China posted better-than-expected manufacturing data.

“Economic data points to healthy demand recovery while risk of further supply disruptions remain high,” said a Singapore-based copper analyst, who sought anonymity in line with company policy.

In Chile, which is battling a growing number of coronavirus infections, miner BHP said it would begin to wind down activity at its small Cerro Colorado copper mine.

“Anything could happen under current market sentiment, it may rally further to $6,200 or $6,500, or it could have a correction as well,” the analyst added.


* OTHER PRICES: LME aluminium fell 0.3% to $1,616.50 a tonne, nickel advanced 0.2% to $12,875 a tonne. In Shanghai, aluminium rose 0.2% to 13,965 yuan a tonne and nickel increased 0.8% to 103,190 yuan a tonne.

* HONG KONG: Hong Kong police arrested more than 300 people protesting China’s security legislation on Wednesday, while the U.S. House of Representatives moved to penalise banks doing business with Chinese officials who implement the law.

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$1 = 7.0653 yuan Reporting by Mai Nguyen; Editing by Sherry Jacob-Phillips and Rashmi Aich