Updates prices, adds China inventory data

By Mai Nguyen

Aug 16 (Reuters) -Copper prices were set for their first weekly gain in six on Friday, supported by supply worries due to a strike at a mine in Chile and receding fears of a recession in the United States.

Three-month copper on the London Metal Exchange CMCU3 fell 0.3% to $9,118 per metric ton by 0731 GMT after hitting a two-week high of $9,184.50 earlier in the session. The metal is set to snap five straight weekly losses, with a 2.8% gain.

The most-traded September copper contract on the Shanghai Futures Exchange SCFcv1 closed up 2.2% at 73,930 yuan ($10,308.29) a ton. The contract climbed to a two-week high of 74,080 yuan earlier. SHFE copper also posted its first weekly gain in six.

A strike at mining giant BHP's BHP.AX Escondida mine in Chile, the world's largest copper mine that accounted for nearly 5% of global supply in 2023, sparked concerns about supply disruptions.

"The (copper) bears are worried about the mine's history of long strikes," said Sandeep Daga, a director at Metal Intelligence Centre.

A 44-day strike in 2017 at Escondida sparked a copper price rally. There were also other strikes in 2006, 2011 and 2015.

In SHFE warehouses, refined copper stockpiles fell to 262,206 tons, the lowest since March 8, exchange data showed.

Meanwhile, positive U.S. retail sales and jobs data eased worries about a potential recession in the country that had pushed base metals prices down in the past three weeks.

"The one-way rally in metal prices (this week) made several bears - who had built positions assuming that the global sell-off ... might mark the beginning of a larger downside - rushed to close their trades," Daga said.

LME aluminium CMAL3 shed 0.5% to $2,351 a ton, tin CMSN3 lost 0.3% to $31,870, zinc CMZN3 dipped 0.3% to $2,773.50, lead CMPB3 edged down 0.4% at $2,025.50 and nickel CMNI3 declined 0.6% to $16,225.

SHFE aluminium SAFcv1 rose 1.4% to 19,370 yuan a ton, zinc SZNcv1 advanced 2% to 23,325 yuan, lead SPBcv1 increased 1.7% to 17,795 yuan, tin SSNcv1 jumped 2.3% to 262,470 yuan while nickel SNIcv1 fell 0.7% to 127,920 yuan.

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Reporting by Mai Nguyen in Hanoi; Editing by Subhranshu Sahu and Eileen Soreng

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