June 26, 2017 / 10:17 AM / 3 years ago

METALS-Copper edges down from 11-week peak after U.S. data

* Copper retreats from Friday’s peak of $5,854.50/T

* Lead prices reach highest since May 3

* LME/ShFE arb - tmsnrt.rs/2oQ5nm2 (Updates with closing prices)

By Jan Harvey

LONDON, June 26 (Reuters) - Copper eased on Monday after U.S. durable goods data missed forecasts, though expectations for upbeat Chinese demand and concerns over mine supply kept the metal underpinned near Friday’s 11-week high.

Among other base metals, lead reached its highest in nearly eight weeks and zinc moved back towards Friday’s 11-week peak as on-warrant London Metal Exchange stocks — metal not earmarked for delivery and therefore available to the market — hit their lowest in nearly a decade.

Copper remained under pressure, however.

“You could argue that the durable goods orders are playing their part in this,” Commerzbank analyst Daniel Briesemann said.

The metal is still holding near Friday’s peak of $5,854.50, its highest since April 7, and is up nearly 5 percent in the year to date, supported by major outages at copper mines in Chile and Indonesia and hopes for buoyant demand.

“We’ve had some reasonably good data on the demand front out of China in terms of state power grid authorisations, better automobile production, a stable housing market,” Societe Generale analyst Robin Bhar. “At the same time you’ve had supply concerns returning.”

* LME COPPER: London Metal Exchange copper closed at $5,794 a tonne, down 0.1 percent after a 1 percent gain in the previous session.

* DURABLE GOODS: New orders for key U.S.-made capital goods fell unexpectedly in May and shipments also declined, suggesting a loss of momentum in the manufacturing sector halfway through the second quarter.

* COPPER STOCKS: Copper inventories in London Metal Exchange warehouses MCU-STOCKS fell another 4,025 tonnes on Friday, exchange data showed, and are now down nearly 100,000 tonnes, or 28 percent, from their early May peak.

* POSITIONING: Hedge funds and money managers cut their net long position in copper futures and options by 13,552 contracts to 49,285 in the week to June 20, U.S. Commodity Futures Trading Commission data showed on Friday.

* ZINC STOCKS: Zinc inventories in LME warehouses MZN-STOCKS fell to their lowest since early 2009 at 301,175 tonnes, exchange data showed, while on-warrant stocks hit their lowest since late 2007 at 81,150 tonnes.

* ZINC AND LEAD: LME zinc closed 0.6 percent up at $2,719 a tonne, off Friday’s peak of $2,747, its highest since April 7. Lead ended the day 1.1 percent up at $2,255, having earlier hit its highest since May 3 at $2,258.50.

* ZINC SPREAD: The discount of the cash contract in LME zinc over the three-month contract has narrowed to zero, exchange data showed, suggesting a tighter LME market.

* OTHER METALS: LME aluminium finished 0.2 percent down at $1,862 a tonne, while tin closed with a 0.3 percent gain at $19,290 and nickel slipped by 0.5 percent to $9,035.

Additional reporting by Melanie Burton in Melbourne; Editing by Edmund Blair and David Goodman

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