Oct 20 (Reuters) - London copper prices fell on Tuesday as a
spike in coronavirus infections in Europe and uncertainty about
a U.S. stimulus deal raised worries about the prospect of a
sustained global economic recovery.
Three-month copper on the London Metal Exchange
declined 0.1% to $6,776 a tonne by 0707 GMT, while the
most-traded November copper contract on the Shanghai Futures
Exchange closed up 0.2% at 51,380 yuan ($7,685.86) a
Surging coronavirus infections in Europe ignited concerns
about more severe lockdowns, while parts of Britain were put
into lockdown and France imposed curfews.
U.S. House Speaker Nancy Pelosi said that she believed
stimulus legislation could be pushed through before Election
Day, while acknowledging an agreement would have to come by
Tuesday for that to happen.
"It's Pelosi's deadline today, so no (trading) position is
the best position. I doubt there'll be deal and the market will
correct lower. There's still a risk of U.S. and European (virus)
cases spreading," said a Singapore-based metals trader.
"Copper can still hold somewhat, with fundamental support
from the Candelaria ...and Codelco issues," the trader added,
referring to labour strikes in Chile, the world's biggest copper
* Workers at Chile's state-run Codelco, the world's largest
copper producer, took to the streets on Monday to reject layoffs
announced by the company during the pandemic.
* Chile's Candelaria copper mine, owned by Canada's Lundin
Mining, said it planned to suspend operations beginning
Tuesday after two of its unions called on their workers to begin
* The discount of LME cash copper over the three-month
contract <CMCU0-3> expanded to its biggest since June 18 at
$20.75 a tonne, swinging from a premium of as much as $40.25 a
tonne in September and signalling more nearby supplies.
* ShFE lead fell as much as 1.4% to 14,180 yuan a
tonne, its lowest since June 24, while LME lead slipped
0.3% to $1,754 a tonne.
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($1 = 6.6850 yuan)
(Reporting by Mai Nguyen; Editing by Subhranshu Sahu and Amy