METALS-Copper extends gains on Chile supply worries, weaker dollar

By Brijesh Patel

Aug 5 (Reuters) - London copper rose for a third straight session on Tuesday, supported an overall weaker U.S. dollar and supply concerns after a fatal mining collapse in top producer Chile.

Three-month copper on the London Metal Exchange CMCU3 was up 0.1% at $9,696 per metric ton, as of 0127 GMT.

The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 gained 0.2% to 78,410 yuan ($10,923.66) a ton.

"Codelco El Teniente copper mine stoppage, weak dollar after last week's U.S. jobs data and risk-on sentiment in general are helping copper prices," a metals trader in Singapore said.

"Debasement of currency looks likely to continue, so holding hard assets in metal as a store of purchasing power is also another theme that could be gaining traction."

Chilean state-run miner Codelco said on Monday that underground operations at its El Teniente copper mine remained suspended, after an earthquake triggered a collapse last week that killed six people.

Codelco is the world's biggest copper miner, while Chile supplies about a quarter of the world's red metal used in industries from construction to electronics.

The dollar index .DXY fell for a third straight session against a basket of rivals after a dismal U.S. jobs report last week.

A weaker dollar makes greenback-denominated assets more affordable to holders of other currencies. USD/

Shares in Asia rose for a second straight session as investors increased bets the Federal Reserve will act to prop up the world's largest economy. MKTS/GLOB

Among other metals in London, aluminium CMAL3 climbed 0.5% to $2,566 a ton, nickel CMNI3 rose 0.1% to $15,085, lead CMPB3 was flat at $1,959.50, tin CMSN3 gained 0.3% to $33,210, and zinc CMZN3 rose 0.1% to $2,752.

SHFE aluminium SAFcv1 was steady at 20,460 yuan, nickel SNIcv1 climbed 0.6% to 120,630 yuan, lead SPBcv1 slipped 0.7% to 16,665 yuan, tin SSNcv1 eased 0.2% to 265,610 yuan, and zinc SZNcv1 rose 0.4% to 22,305 yuan.

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