Copper slips as Peru mine blockade seen ending

LONDON, April 2 (Reuters) – Copper prices eased on Tuesday, under pressure from a stronger dollar and signs that a blockade of a mine in Peru may end after government intervention, easing supply concerns. The Peruvian government offered a deal to indigenous protesters to lift their blockade at Chinese miner MMG Ltd’s Las Bambas copper mine in the Andean region. A decision is pending agreement from the community. The protesters have blocked roads to the mine, which produces about 2 percent of global copper output, since early February, demanding compensation from MMG for using a stretch of road on their farmland. “The stoppage could be impacting sentiment a little bit but we are all factoring in that the mine will be back up and running,” said BMO Capital Markets analyst Colin Hamilton. “The concentrate side is still tightening up with Las Bambas out but there is enough refined inventory to cover needs,” he said. Benchmark copper fell 0.5 percent to $6,440 per tonne in official open outcry activity, its second straight session of declines and retreating from a one-week high touched on Monday. DOLLAR: Meanwhile, the U.S. dollar rose against a basket of major currencies following relatively upbeat data from the United States. A stronger greenback makes dollar-denominated commodities more expensive for non-U.S. firms which is a relationship used by funds to generate buy and sell signals. INVENTORIES: On warrant stocks in LME-approved warehouses available to the market inched down 1,100 tonnes to 143,375 tonnes, but are still up nearly seven-fold from 21,600 tonnes in February. STEEL: Steel consumption in the Philippines is likely to rise by 5-6 percent this year to a record 11.1 million tonnes as the country’s economy continues to grow, the head of an industry group told Reuters on Monday. ZINC: Korea Zinc Inc and Teck Resources Ltd have agreed annual concentrate treatment charges of about $245 a tonne, 67 percent higher than last year, as mine supply ramps up, two industry sources said. GANFENG LITHIUM: China’s Ganfeng Lithium Co said on Monday it would spend $160 million to boost its ownership stake in an Argentina lithium project with Lithium Americas Corp , part of a plan to solidify its access to the white metal used to make electric vehicle batteries. JERVOIS MINING: Australian cobalt developer Jervois Mining said it would buy out Canada-based Ecobalt Solutions Inc, for C$57.6 million ($43.23 million), to expand its geographical footprint in the United States. OTHER PRICES: LME aluminium fell 0.9 percent to $1,883, zinc retreated from nine-month highs, declining 2 percent to $2,877, lead fell 1.1 percent to $1,999, tin edged down 1.3 percent to $21,200 while nickel shed 0.2 percent at $13,100 per tonne.