LONDON (Thomson Financial) - Copper eased as high stockpiles in Asia and lighter Chinese demand outweighed strike threats across the globe.
However, dwindling LME stockpiles underpinned the red metal, which fell 75 tonnes to 118,950 tonnes, said the exchange in a daily report.
Sudakshina Unnikrishnan, metals analyst at Barclays Capital, said inventories in Asia are rising and Chinese demand is likely to fall further, after the world's top copper consumer imported so much of the metal it is now oversupplied.
'If you don't have strong Chinese demand, in a sense that removes one of the key demand side factors,' Unnikrishnan said.
At 10.35 am, LME copper for 3-month delivery was lower at 7,415 usd a tonne against 7,480 usd yesterday.
Meanwhile, Canada's CCR refinery is operating well below capacity due to a labour dispute. Southern Copper is facing a partial shutdown due to workers' protests at two mines and one smelter and Codelco's workers are also on strike. Codelco confirmed that one shift was lost to protestors barring entry to the underground mine at El Teniente while the rest of Codelco's operations are less affected.
'If this strike action continues...then copper could get a solid uplift,' said JP Morgan analyst Michael Jansen.
Elsewhere, lead struck another all time high today, supported by strong demand, a weak supply outlook and as China has removed tax rebates on lead exports.
'The market is short of lead although physical indications do suggest something to the contrary as evidenced by flat premiums out of the US,' noted Jansen.
Lead was up at 2,715 usd from 2,710 usd after hitting an all time high of 2,745 usd this morning.
In other metals, aluminium edged down to 2,714 usd against 2,721 usd while zinc eased to 3,470 usd against 3,530 usd. Nickel was lower at 38,900 usd from 39,150 usd yesterday.
Tin was lower at 13,975 usd from 14,090 usd. anealla.safdar@thomson.com as/as/jag COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.