METALS-Copper reduces inventories, but its US dollar is stable

(Add quotes, update prices)

By Mai Nguyen

SINGAPORE, July 8 (Reuters) – Copper prices fell on Monday due to stockpiling and the stability of the US dollar, after the strength of US employment data, which have reduced the hopes of an aggressive rate cut by the Federal Reserve.

US employment growth rebounded sharply in June, helping the US dollar stabilize at its highest level since June 19. A stronger dollar makes US dollar denominated metals more expensive to import using other currencies.

Copper stocks in London Metal Exchange (LME) approved warehouses reached their highest level in 13 months at 302,975 tonnes, data released last week showed. MCUSTX TOTAL

Three-month copper on the London Metal Exchange was down 0.1% at $ 5,898 per tonne, at 0:35 GMT, while the most traded copper contract on the Shanghai Futures Exchange (ShFE) was unchanged at 46%. 420 yuan ($ 6,736.32) per ton.

FUNDAMENTALS

* ZINC SPREAD: Differences between spot zinc and the three-month CMZN0-3 contract tipped at a discount of $ 3 per tonne on Friday after being held in the premium zone for nearly five months, suggesting greater availability of nearby supplies.

* ZINC PRICE: ShFE zinc reached its lowest level in six months at 19,240 yuan per ton. The fall monitoring on the LME is worried about the increase in stocks and weak demand. LME zinc was flat after reaching its lowest level since Jan. 3 on Friday.

* "An increase in refined zinc production has led to lower premiums," an badyst based in China said.

* ZINC EXPENSES: Processing and refining costs in China, the largest producer of metal, reached a record high of $ 240 per tonne since May, suggesting that China's melting capacity does not match processing needs. SMM-ZNCONC-IMP

* Chinese zinc smelters are expected to enter their seasonal maintenance season in July and August. The supply of refined zinc is expected to increase only marginally over the next few months, said another badyst based in China.

* TSINGSHAN / GEM: Tsingshan and other companies investing in an electric vehicle battery chemical plant in Indonesia will have to pay much more than the estimated $ 700 million estimated last year, sources said folder.

* INDONESIA: Indonesia's refined tin exports grew 36 percent year-on-year to 7,620.9 tons in June, according to Ministry of Commerce data released on Friday.

* PRICE: ShFE tin increased 2.2%, while nickel jumped 1.7% and aluminum dipped 0.4%. Aluminum at LME remained virtually unchanged, nickel rose 0.2% and tin 0.7%.

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PRICES

LME copper three months

ShFE Copper Most Active

LME three months in aluminum

Most active ShFE aluminum

LME zinc three months

The most active ShFE zinc

Three months ahead on the LME

Most active ShFE lead

LME nickel three months

Most active nickel ShFE

Three month box LME

ShFE Pewter the most active

ARBS ($ 1 = 6.8910 Chinese yuan)