Copper hits 1-month high on Chile unrest, easing trade tensions

• Benchmark copper on the London Metal Exchange was up 0.4% at $5,827 a tonne at 0929 GMT. Prices of the metal used widely in power.
• China accounts for nearly half of global copper consumption estimated at around 24 million tonnes this year.

LONDON: Copper prices rose to one-month highs on Monday as protests in major producer Chile fuelled concern about supplies and the prospect of easing trade tensions between China and the United States boosted sentiment.

Benchmark copper on the London Metal Exchange was up 0.4% at $5,827 a tonne at 0929 GMT. Prices of the metal used widely in power and construction earlier touched a session high at $5,839.5 a tonne.

"Some of it is a knee-jerk reaction to what's happening in Chile, but as far as we know copper production hasn't been affected," a trader said.

"Positive noises on resolving the US-China standoff helped, but the market is still worried about demand, particularly in China."

CHILE: Chile is "at war" and the government will extend a state of emergency to more cities, President Sebastian Pinera said, after at least seven people were killed in violent clashes and arson attacks over the weekend.

TRADE: US President Donald Trump thinks a US-China trade deal will be signed by the time of the Asia-Pacific Economic Cooperation meetings in Chile on Nov. 16-17.

DEMAND: Growth and demand in China has come under pressure from the prolonged trade dispute. Recent data shows some improvement, but not enough for a major rally in prices of industrial metals.

"We've seen some stabilisation in Chinese data and some easing of trade tensions," said Danske Bank analyst Jens Pederson. "But metals markets haven't yet bought into the idea that prices may have bottomed."

DATA: China's property investment was buoyant in September, boosted by a rise in new construction activity, underlining hopes that resilience in the sector will help cushion a broader slowdown in the world's second-largest economy.

China accounts for nearly half of global copper consumption estimated at around 24 million tonnes this year.

NICKEL: The premium for the cash over the three-month nickel contract ended at $73 a tonne on Friday, down from 10-year highs above $200 a tonne at the start of the month as worries about supplies on the LME market receded. Traders expect to see stocks rising over coming days <MNISTX-TOTAL>.

Benchmark prices of the stainless steel material were down 0.3% at $16,175 a tonne.

LEAD: Historically low stocks <MPBSTX-TOTAL> of the battery metal have helped create a premium for the cash over the three-month contract <MPB0-3>. It closed at $16 a tonne on Friday, close to the $22 a tonne hit earlier in the week and the highest since early August.

Three-month lead slipped 0.1% to $2,179 a tonne.

PRICES: Aluminium was up 0.3% at $1,744 a tonne, zinc added 0.6% to $2,471 and tin fell 1.6% to $16,685 a tonne.