METALS-LME copper rises from over one-week low on bargain buying

Feb 18 (Reuters) - LME copper rose on bargain-hunting by investors in thin Asian trade on Wednesday, after falling to a more than one-week low in the previous session when high inventories of the red metal and a firm dollar pressured prices.

Benchmark copper CMCU3 on the LME added 0.7% to $12,708.50 a metric ton as of 0800 GMT, having fallen 1.8% on Tuesday.

The Shanghai Futures Exchange is closed for the Lunar New Year holidays till February 23.

"It is the holiday season, so demand won't be that strong anyway. Some price recovery (in copper) on bargain buying is there today," said ANZ analyst Soni Kumari.

While the market could see some softness after the recent rally, the overall outlook remains positive for metals, as seasonal demand has not yet kicked in and the market will see how strong Chinese demand is once they're back, she added.

Copper stocks in LME-approved warehouses increased by 9,775 tons to 221,625 tons on Tuesday MCUSTX-TOTAL, the highest in 11 months.

"High inventories could take a little while to clear, given the holiday conditions," Tim Waterer, chief market analyst at KCM Trade, said.

Analysts at Goldman Sachs expect upside to their 2026 fourth-quarter copper price forecast of $11,200 per metric ton if proposed strategic stockpiling by the U.S. and potentially China reduces metal inventories.

Meanwhile, Chilean miner Antofagasta ANTO.L posted a 52% jump in annual core profit on Tuesday, as record high copper prices last year offset slightly weaker output. The miner said its increased capital spending would support production in the medium term.

In other metals, zinc prices ticked up 0.5% to $3,301.50 CMZN3, after touching a two-week low on Tuesday.

Aluminium CMAL3 added 0.3% to $3,044.50, set to snap a four-session losing streak. Lead CMPB3 gained 0.1% to $1,947.50, tin CMSN3 dipped 0.4% to $45,575, and nickel CMNI3 was up 0.3% at $16,900 a ton.