May 4, 2020 / 1:58 AM / a month ago

METALS-London copper near 2-week low on oversupply concerns

SINGAPORE, May 4 (Reuters) - London copper prices slipped to a near two-week low on Monday on fears of excess supply, as some producers looked set to resume operations and demand took a hit from the coronavirus outbreak.

Three-month copper on the London Metal Exchange (LME) fell as much as 1% to $5,061 a tonne, its lowest since April 22.

The global copper market is headed for a surplus of between 200,000-300,000 tonnes in 2020, the head of miner Antofagasta told Chilean media.

Global metals demand is expected to dwindle this year, as coronavirus-induced lockdowns around the world bring economic activity to a virtual standstill.

Supply prospects for copper, meanwhile, got a boost after Peru, the world’s second-biggest-producer of copper, said on Sunday it will gradually ease virus-driven restrictions on key sectors including mining in May.

Glencore’s Zambian subsidiary Mopani Copper Mines will resume mining for 90 days following a backlash from the government, but the company still expects to go ahead with its initial plan to place operations on hold.

FUNDAMENTALS

* SHFE: The Shanghai Futures Exchange (ShFE) is closed for a public holiday in China and will reopen on Wednesday.

* NICKEL: Police in Indonesia’s North Maluku province arrested 8 people linked to a workers’ demonstration that turned violent at a nickel project run by France’s Eramet and China’s Tsingshan Holding Group.

* OTHER PRICES: LME aluminium dipped 0.3% to $1,482.50 a tonne by 0128 GMT, nickel eased 0.1% to $11,945 a tonne, zinc declined 0.6% to $1,902 a tonne and lead decreased 0.3% to $1,623.50 a tonne.

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MARKETS NEWS

* The dollar rose, oil fell and stock markets were poised to slip as rising U.S.-China tensions over the coronavirus - and growing unease at the gulf between asset prices and grim economic reality - turned investors cautious.

DATA/EVENTS (GMT)

0500 India IHS Markit Mfg PMI April

0750 France Markit Mfg PMI April

0755 Germany Markit/BME Mfg PMI April

0800 EU Markit Mfg Final PMI April

1400 US Factory Orders MM March

PRICES

Three month LME copper

Most active ShFE copper

Three month LME aluminium

Most active ShFE aluminium

Three month LME zinc

Most active ShFE zinc

Three month LME lead

Most active ShFE lead

Three month LME nickel

Most active ShFE nickel

Three month LME tin

Most active ShFE tin

ARBS (Reporting by Mai Nguyen; Editing by Aditya Soni)

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