(Updates prices, recasts) Aug 6 (Reuters) - Copper prices fell on Friday as solid U.S.jobs data pushed the dollar sharply higher, making metals moreexpensive for buyers with other currencies.
Copper had been trading higher after news that a union atthe world's biggest copper mine, Chile's Escondida, told workersto prepare for a strike that would reduce supply.
But by 1605 GMT, benchmark copper on the LondonMetal Exchange was down 0.2% at $9,472.50 a tonne. It was downmore than 2.5% this week amid concerns that demand in topconsumer China will weaken.
"Dr Copper is supposed to give a good reading of how theeconomy is doing, and I think we are in limbo phase right now,"said WisdomTree analyst Nitesh Shah.
"Economic growth is back but there's some doubt with theDelta variant (of the coronavirus)."
Used in power and construction, copper has gained more than20% this year and touched a record high of $10,747.50 in May. Shah said prices would be supported over the longer term bydemand for infrastructure and underinvestment in new mines. MARKETS: The Dow and the S&P 500 briefly reached recordhighs, while the dollar saw its biggest gain since June afterthe jobs numbers. STRIKE: More than 2,000 union members at the Escondida minerejected a contract offer. Local law requires five days ofmediation after a contract is rejected, followed by a possiblefive-day extension if a deal cannot be reached. GERMANY: Industrial output in Germany again fellunexpectedly in June. CHINA: Robust export growth is likely to have moderated inJuly, a Reuters poll showed. China's factory activity alsoexpanded in July at its slowest pace in 17 months. COVID: China reported 124 new confirmed coronavirus cases,the highest daily count in its current outbreak. DRC: China Molybdenum said it would spend $2.51 billion toroughly double production of copper and cobalt at its TenkeFungurume mine in the Democratic Republic of Congo. PRICES: LME aluminium was down 0.4% at $2,579 atonne, zinc fell 1.6% to $2,981, nickel lost1.4% to $19,210, lead slipped 3.4% to $2,281.
Tin bucked the trend and was up 0.4% at $34,750.
(Reporting by Peter HobsonAdditional reporting by Mai Nguyen in HanoiEditing by David Goodman, Alistair Bell and Diane Craft)
LME price overview COMEX copper futures All metals news All commodities news Foreign exchange rates SPEED GUIDES )) Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.