(Updates prices for Asia midday session)
By Brijesh Patel
Aug 5 (Reuters) -
Copper prices rose on Tuesday, supported by a weaker U.S.
dollar and supply concerns after the collapse of a mine in top
producer Chile.
Three-month copper on the London Metal Exchange
advanced for the third straight session, up 0.2% at $9,709.50
per metric ton, as of 0315 GMT.
The most-traded copper contract on the Shanghai Futures
Exchange gained 0.4% to 78,490 yuan ($10,930.38) a ton.
Chilean miner Codelco said on Monday that underground
operations at its El Teniente copper mine remained suspended,
after an earthquake triggered a collapse that killed six people
last week.
Codelco is the world's biggest copper miner, while Chile
supplies about a quarter of the world's red metal.
"The Codelco El Teniente copper mine stoppage, a weaker
dollar after last week's U.S. jobs data and risk-on sentiment
are helping copper prices," a Singapore-based metals trader
said.
"The debasement of the dollar is likely to continue, so
holding hard assets in metals as a store of purchasing power
could be gaining traction."
The dollar index fell for a third straight session
after a soft U.S. jobs report last week.
A weaker dollar makes greenback-denominated assets more
affordable to holders of other currencies.
Risk appetite has risen globally after the jobs report
raised bets that the Federal Reserve may cut rates soon to
support the economy.
Copper, used in power and construction, is seen as a gauge
for the health of the global economy.
Among other metals in London, aluminium climbed 0.7%
to $2,569.50 a ton, nickel rose 0.3% to $15,100, lead
was up 0.1% at $1,960.50, tin gained 0.4% to
$33,265, and zinc rose 0.4% to $2,760.50.
SHFE aluminium was up 0.3% at 20,520 yuan, nickel
climbed 0.8% to 120,850 yuan, lead slipped
0.5% to 16,690 yuan, tin rose 0.5% to 267,380 yuan, and
zinc gained 0.6% to 22,330 yuan.
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($1 = 7.1780 Chinese yuan)