METALS-London copper gains on Chile supply woes, but rising stocks cap upside

By Brijesh Patel

Aug 6 (Reuters) - London copper prices edged higher on Wednesday, supported by supply concerns after a fatal mining collapse in Codelco [RIC:RIC:COBRE.UL], the world's largest copper producer, though rising inventories on the London Metal Exchange capped gains.

Three-month copper on the London Metal Exchange CMCU3 was up 0.2% at $9,655 per metric ton, as of 0149 GMT.

However, the most-traded copper contract on the Shanghai Futures Exchange SCFcv1 eased 0.3% to 78,250 yuan ($10,884.38) a ton.

Chilean state-run miner Codelco must produce four reports on the collapse at its El Teniente copper mine that killed six people after an earthquake last week, according to a government document seen by Reuters on Monday, before it can restart its underground operations there.

The El Teniente mine produced 356,000 tons of copper last year.

"Traders are now starting to re-export some of the record shipments they brought into the U.S. in a bid to gain from higher prices. These disruptions to trade flows are overshadowing supply concerns in Chile," ANZ analysts said in a note.

Copper stored in LME-registered warehouses MCUSTX-TOTAL rose by 14,275 tons to a total of 153,850 tons, marking a gain of 70% since late June.

Last week, surprisingly weak U.S. jobs data triggered bets on Federal Reserve interest rate cuts from September causing the dollar to weaken and making greenback-priced metals, such as copper, cheaper for holders of other currencies. USD/

Among other metals in London, aluminium CMAL3 edged 0.2% higher to $2,567.50 a ton, nickel CMNI3 rose 0.5% to $15,105, lead CMPB3 gained 0.5% to $1,984, tin CMSN3 eased 0.3% to $33,205, and zinc CMZN3 rose 0.1% to $2,759.50.

SHFE aluminium SAFcv1 was up 0.5% at 20,605 yuan, nickel SNIcv1 rose 0.2% to 121,020 yuan, lead SPBcv1 gained 1.1% to 16,890 yuan, tin SSNcv1 climbed 0.5% to 267,470 yuan, and zinc SZNcv1 was steady at 22,325 yuan.

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