METALS-Copper sags as disruption worries subside and inventories rise

By Eric Onstad

LONDON, July 16 (Reuters) - Copper prices slipped on Wednesday as supply disruption concerns eased and inventories continued their rise while the impact of U.S. tariffs remains uncertain.

Benchmark three-month copper CMCU3 on the London Metal Exchange eased by 0.2% to $9,626 a metric ton by 1610 GMT, down from a three-month peak just above $10,000 on July 2.

Copper and other base metals pared losses after the dollar slid on reports that U.S. President Donald Trump could fire Federal Reserve Chair Jerome Powell, though Trump later said such action was highly unlikely.

A weaker dollar makes commodities priced in the U.S. currency cheaper for buyers using other currencies.

Earlier in the session, investors focused on the potential for higher copper supply.

"There hasn't been any additional supply disruption to push prices higher across the various exchanges," said WisdomTree commodities strategist Nitesh Shah.

Protesters have lifted blockades that had choked off a copper transit route in Peru, the world's third-biggest copper producer, for more than two weeks.

Rio Tinto RIO.L, meanwhile, forecast full-year production at the higher end of its guidance range and Antofagasta ANTO.L reported an 11% jump in first-half copper production.

At the same time, a flow of copper to the U.S. by traders anticipating tariffs has tapered off after the announcement that 50% duties would be imposed on August 1.

LME copper stocks MCUSTX-TOTAL increased by a further 10,525 tons, data showed on Wednesday, having jumped by a third over the past 2-1/2 weeks.

U.S. Comex copper futures HGc3 lost 0.8% to $5.53 per lb, bringing the Comex premium over LME copper to $2,570 a ton.

Investors were also digesting data on Tuesday that showed China's economy slowed less than expected in the second quarter.

"The GDP print, hitting slightly above target, takes away the need for additional stimulus, and that could potentially constrain copper prices," said WisdomTree's Shah.

LME tin CMSN3 dropped 1.2% to a $32,830 a ton after touching a three-week low on market fears of oversupply.

Tin shipments from Myanmar's Wa State are expected to resume in the coming months after a ban that lasted nearly two years, the International Tin Association said on Wednesday.

Among other metals, LME aluminium CMAL3 was down 0.2% at $2,575 a ton, nickel CMNI3 lost 0.8% to $15,025, zinc CMZN3 edged up 0.1% to $2,700 and lead CMPB3 slipped by 0.8% to $1,980 for its weakest since June 20.

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