MELBOURNE, June 4 (Reuters) - Shanghai copper rallied to the
highest in more than six weeks on Monday, underpinned by a
slightly softer dollar and supply concerns amid wage
negotiations at the world's largest copper mine.
The union of workers at BHP's Escondida
copper mine in Chile said on Friday it had kicked off the latest
round of labour negotiations with a contract proposal that
includes a bonus of about $34,000 per worker at the world's
largest copper mine.
Supply concerns are supportive, however, demand may be pared
back as June is typically a quieter month for demand due to
summer holidays in the northern hemisphere.
"We think LME prices will remain range-bound in June and
don't see any major fireworks in the sector in either
direction," INTL FC Stone said it a monthly report.
FUNDAMENTALS
* Shanghai Futures Exchange copper climbed 1.2
percent to 51,930 yuan ($8,090) a tonne, having earlier struck
the highest since April 19.
* COPPER: London Metal Exchange copper climbed 0.4
percent to $6,920.50 by 0415 GMT, adding to gains in the
previous session. Prices earlier rose to $6,964.50, the highest
since May 23 and have punched above the 100-day moving average,
improving the metal's technical picture.
* "I think the spreads tightening is... likely related to
jitters about (the) potential union negotiation in Chile for
potential strikes in August," a trader said.
* TRADE: China warned the United States on Sunday that any
agreements reached on trade and business between the two
countries will be void if Washington implements tariffs and
other trade measures, as the two ended their latest round of
talks in Beijing.
* U.S. ECONOMY: U.S. jobs growth accelerated in May and the
unemployment rate dropped to an 18-year low of 3.8 percent,
pointing to rapidly tightening labour market conditions, which
could stir concerns about inflation.
* STERLITE: Eleven days after police in southern India fired
on protesters seeking the shutdown of a copper smelter owned by
London-listed Vedanta, killing 13, residents say people
suspected of involvement in the demonstrations are being
targeted in a wave of arrests.
* NICKEL: Premiums for nickel clambered off 15-month lows,
rising by $25 to $190 as the price window for imports turned
more attractive. Shandong Xinhai Technology Co, one of China's
largest nickel pig iron producers, has been told to cut back
output ahead of a summit in nearby Qingdao.
* COMING UP: U.S. Factory orders for April at 1400 GMT
