HANOI, June 4 (Reuters) - Shanghai copper prices dropped to
their lowest in nearly six weeks on Friday, and posted a weekly
decline, on worries about tighter U.S. monetary policy after
strong jobs data.
The most-traded July copper contract on the Shanghai Futures
Exchange dropped as much as 3.6% to 70,470 yuan
($11,001.14) a tonne, the lowest since April 26, before edging
up to close at 70,910 yuan a tonne, still down 2.9%.
The number of Americans filing new claims for unemployment
benefits dropped below 400,000 last week for the first time
since the COVID-19 pandemic started more than a year ago.
"Prices have been trending higher in recent months as
investors bet that the huge government stimulus measures would
boost demand. Consequently, any data which puts this under
threat was always likely to be viewed bearishly," said ANZ
analysts in a note.
U.S. non-farm payrolls data is due later on Friday and will
offer more hints on the U.S. economic recovery and the
likelihood of any policy changes there.
"Nevertheless, the underlying fundamentals remain positive.
Supply side issues continue to percolate. This is against a
broader backdrop of subdued investment that will restrict the
market's ability to meet even modest growth in demand," the
Three-month copper on the London Metal Exchange
rebounded 0.2% to $9,810 a tonne by 0702 GMT, having tumbled as
much as 3.8% in the previous session.
However, the contract was still below a key $10,000-a-tonne
mark, and set for its biggest weekly fall since March 2020, down
* LME aluminium fell 0.2% to $2,399.50 a tonne, zinc
advanced 0.3% to $2,992.50 a tonne while ShFE nickel
shed 1.9% to 131,350 yuan a tonne and ShFE zinc
dropped 2% to 22,520 yuan a tonne.
* China's primary aluminium output will increase until 2024,
after which recycled metal will start to claim a bigger share of
plateauing consumption, research house Antaike said.
($1 = 6.4057 yuan)
(Reporting by Mai Nguyen; Editing by Rashmi Aich and Devika