NEW YORK, May 16 (Reuters) - U.S. copper futures closed up more than 2 percent Friday, hitting nine-day highs, after sharp gains in metals and almost all commodities on the back of a weaker dollar.
NOTE: For detailed report, click on [MET/L].
* July copper delivery <HGN8> settles up 8.8 cents at $3.8265 a lb on the COMEX metals division of the New York Mercantile Exchange. Trade ranges from $3.7395 to $3.8595, highest since May 7.
* Final market volume estimated at 16,897 lots.
* Copper buoyed by gains in aluminum and zinc, and rally across commodities complex, led by crude oil and gold.
* No extra buying on back of surprise 8.2 percent gain in April U.S. housing starts - floor broker.
* Traders cite tightness based on LME cash three-month backwardation widening out after midweek narrowing.
* Chinese demand seen slack. Chinese dealers have built up stocks and could wait for lower prices.
* Shanghai inventories rose 1 percent to 51,507 tonnes.
* LME copper stocks rose 375 tonnes.
* LME three-month copper <MCU3> was last traded at $8,420.00 a tonne, against Thursday's kerb close of $8,296. (Reporting by Barani Krishnan and Alden Bentley) ((barani.krishnan@reuters.com; Reuters Messaging: barani.krishnan.reuters.com@reuters.net; 646 223 6192))
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Keywords: MARKETS COPPER/COMEX
(Adds fresh quotes, details throughout)
By Manuel Farias
SANTIAGO, May 16 (Reuters) - Chilean subcontract miners on Friday threatened a new strike at state-owned copper giant Codelco, giving it an ultimatum to pay an agreed bonus that formed part of the deal that had ended a three-week stoppage.
"They have until this afternoon to fulfill what was agreed, to pay workers 300,000 pesos (US$643) and set the groundwork for dialogue," said union leader Cristian Cuevas, who heads the Confederation of Copper Workers.
"If we don't see these signals, we as subcontract workers will have to resume our protests. We don't rule anything out," he added.
Thousands of subcontract miners halted their strike last week after a government proposal that included Codelco hiring some of them on a permanent basis, in keeping with agreements made last year, and the payment of the bonus.
The strike, the latest in a series of at times violent protests by workers demanding a bigger share of windfall copper revenues, hit leading global copper producer Codelco's output and helped push prices for the red metal to record highs.
Codelco said in a statement it had been informed by unions that 23,000 subcontract workers had already been given the bonus payment, and that another 5,000 would receive it "in the coming days."
Codelco says it is up to the companies it subcontracts the miners from to deal with the workers and their demands.
There are around 32,000 subcontract miners working for Codelco.
"The subcontract companies are fulfilling the payment of 300,000 pesos of the 2008 bonus, as agreed with their workers after the understanding reached on May 2," Codelco said in a statement.
Cuevas on Thursday ended a hunger strike he began on Monday, after President Michelle Bachelet vowed the state giant would make good on its end of the strike-ending pact. On Monday he had accused Codelco of not living up to its pledges.
Two weeks into the subcontractor strike, Codelco said it had lost about 19,000 tonnes of production, valued at about $100 million.
But it has not yet given an update on estimated losses from the whole strike, which disrupted operations at three of its divisions, including Teniente -- home to the world's largest underground copper mine.
Codelco produces about 1.7 million tonnes of copper per year and Chile is the world's top source of the red metal. ($1 = 466.90 peso) (Writing by Simon Gardner; Editing by John Picinich) ((simon.gardner@thomsonreuters.com; + 562 370-4250; Reuters Messaging: simon.gardner.reuters.com@reuters.net))
Keywords: CHILE CODELCO/SUBCONTRACTORS
LONDON, May 16 (Reuters) - Gold broke above the key resistance level of $900.00 per ounce and hit a three-week high of $903.50 on Friday as the dollar fell against the euro and oil traded near record highs.
"It is up on the back of the euro/dollar and weak consumer sentiment," analyst Michael Widmer at Lehman Brothers said.
By 1439 GMT, gold <XAU=> traded at $902.80/903.50 against $881.55/882.75 in the previous session. (Reporting by Anna Stablum, editing by Ben Tan)
((anna.stablum@reuters.com; Reuters Messaging: anna.stablum.reuters.com@reuters.net; +44 20 7542 7928))
Keywords: MARKETS PRECIOUS/GOLD
NEW YORK, May 16 (Reuters) - U.S. copper futures rose to an eight day high in early trade on Friday, following gains across the metals complex.
NOTE: For detailed report, click on [MET/L].
* July copper delivery <HGN8> up 9.30 cents at $3.8315 a lb on the COMEX. Range $3.7395 to $3.8420, highest since May 8.
* 9 a.m. EST volume estimated at 6,501 lots.
* Copper buoyed by gains in aluminum and zinc, and across commodities complex. Gold and oil surges watched.
* No extra buying on back of surprise 8.2 percent gain in April U.S. housing starts - floor broker.
* Traders cite tightness based on LME cash-three month backwardation widening out after midweek narrowing.
* Chinese demand seen slack. Chinese dealers have built up stocks and could wait for lower prices.
* Shanghai inventories rose 1 percent to 51,507 tonnes.
* LME copper stocks rose 375 tonnes.
* LME three-month copper rose to $8,432.50 a tonne as of 9:42 a.m. EST, from Thursday's kerb close at $8,296. (Reporting by Alden Bentley; editing by Jim Marshall) ((alden.bentley@reuters.com; Reuters Messaging: alden.bentley.reuters.com@reuters.net; 646 223 6041))
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RELATED NEWS AND OTHER TOPICS Precious metals news [GOL] All metals news [MTL] All commodities news [C] Metals diary [MTL/DIARY] Ldn Bullion Mkt Assoc <LBMA01> Foreign exchange rates <FX=S> Keywords: MARKETS COPPER/COMEX
NEW YORK, May 16 (Reuters) - A weaker dollar lifted gold futures Friday at the COMEX division of the New York Mercantile Exchange above $900 an ounce for the first time since April 24 as floor business opened.
At 8:34 a.m. EST (1234 GMT), gold for June delivery <GCM8> was up $16.90 or 1.92 percent at $896.90 an ounce after reaching $900.20 from a low of $880.50. (Reporting by Alden Bentley; Editing by John Picinich) ((alden.bentley@reuters.com; Reuters Messaging: alden.bentley.reuters.com@reuters.net; 646 223 6041)) Keywords: GOLD RALLY
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