SINGAPORE, April 9 (Reuters) - Zinc prices fell on Tuesday on concerns that metal smelters may raise supply amid a surge in treatment charges while copper and other base metals climbed after the dollar declined.
London benchmark zinc fell 0.8 percent to $2,883 a tonne by 0416 GMT, and the most active zinc contract on the Shanghai Futures Exchange dropped 1.6 percent to 22,710 yuan ($3,382.53) a tonne.
Market participants are concerned that supplies of finished zinc will surge after smelters and miners agreed to a sharp rise in the latest treatment and refining charges. For Chinese smelters, those charges have climbed to about 6,350 yuan ($945.83) a tonne for domestic concentrate from 3,500 yuan at the start of 2018.
“Current profits for the smelters are very high. This will push smelters to increase their utilisation rate,” said Dina Yu, an analyst at metals consultants CRU in Beijing, adding Chinese smelters are earning profits of as much as 3,000 yuan ($446.85) a tonne, a record high.
The overall base metal market traded higher after the dollar fell for a second day against a basket of major currencies . Dollar-denominated base metals tend to rise as they are cheaper for buyers paying in other currencies.
* On-warrant LME zinc inventories MZNSTX-TOTAL rose 6 percent to 46,725 tonnes after touching record lows in late March, according to daily LME data on Monday.
* Indigenous villagers in Peru who have been blocking MMG Ltd’s Las Bambas copper mine for two months will vote on Tuesday to decided whether they agree with a deal signed by their community president and the Chinese miner the day before.
* Anglo American, one of the world’s top miners, says productivity could jump by as much as a third at its Chilean copper mines within three years as it rolls out new technologies.
* Three-month copper on the London Metal Exchange rose 0.6 percent to $6,511.50 a tonne, while aluminium edged up 0.2 percent, nickel rose 0.4 percent, lead was up 0.5 percent and tin advanced 0.5 percent.
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* Asian shares got off to a subdued start as investors braced for key events later in the week, including the kick-off of the U.S. earnings season and a crucial Brexit summit, while broader concerns over slowing global growth checked sentiment.
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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 ($1 = 6.7139 Chinese yuan renminbi)
Reporting by Mai Nguyen; editing by Christian Schmollinger