METALS-Copper slips as the blockade of Peru's mine seen ending



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From Zandi Shabalala

LONDON (Reuters) – Copper prices fell on Tuesday, under pressure from a stronger dollar and signals that a mine blockade in Peru could end after government intervention, alleviating supply concerns.

The Peruvian government has offered an agreement to indigenous protesters to suspend its blockade at the Las Bambas copper mine by Chinese miner MMG Ltd in the Andean region. A decision is pending community agreement

Protesters have blocked roads to the mine, which has produced about 2 percent of global copper production since early February, demanding compensation from MMG for using a stretch of road on its farmland.

"The shutdown may be affecting the sentiment a bit, but we are all considering that the mine will be back on track," said Colin Hamilton, an analyst at BMO Capital Markets.

"The side of the concentrate is still increasing with the Las Bambas, but there is enough refined stock to cover the needs," he said.

Reference copper fell 0.5 percent to $ 6,440 a tonne in the official censoring activity, the second consecutive session of declines and a one-week high on Monday.

DOLLAR: Meanwhile, the US dollar has risen against a basket of major currencies, following relatively optimistic data from the United States.

A stronger dollar makes dollar-denominated commodities more expensive for non-US companies, which is a relationship used by funds to generate buy-sell signals.

INVENTORIES: In shares of warrants in LME-approved deposits available on the market, they dropped 1,100 tons to 143,375 tons, but are still almost seven times higher than 21,600 tons in February. MCUSTX-TOTAL

Steel consumption in the Philippines is expected to rise 5 percent to 6 percent this year to a record 11.1 million tonnes as the country's economy continues to grow, the head of an industrial group told Reuters on Monday .

ZINC: Korea Zinc Inc and Teck Resources Ltd have agreed annual concentrate treatment rates of about $ 245 a tonne, up 67 percent from last year as the mine's supply grows, two industry sources said.

Chinese company Ganfeng Lithium said on Monday it would spend $ 160 million to increase its stake in an Argentine lithium project with Lithium Americas Corp, part of a plan to solidify its access to the white metal used to make electric vehicle batteries .

JERVOIS MINING: Australian cobalt developer Jervois Mining said it would buy U.S.-based Ecobalt Solutions Inc for $ 43.2 million to expand its geographic presence in the United States.

OTHER PRICES: aluminum fell 0.9% to $ 1,883, zinc fell nine months, fell 2% to $ 2,877, lead fell 1.1% to $ 1,999, tin fell 1.3% to US $ 21,200, while nickel fell 0.2% to US $ 13,100 a tonne.

Additional reporting by Mai Nguyen; editing by Emelia
Sithole-Matarise

Our standards:The Thomson Reuters Trust Principles.

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