London Metal Exchange copper futures were little changed in Asian trade on Thursday as markets awaited an outcome to talks in Chile over a strike at the world's largest copper mine.
Talks to end the 10-day strike at the Escondida mine, majority owned by global miner BHP Billion, ended on a mixed note on Wednesday night as the company said there had been progress but the union said there was none.
The union, which represents more than 2,000 workers, cut its demand for a raise to 10 percent from 13 percent and said the company must respond by increasing its offer, which stands at a 3 percent raise.
Both sides said they would meet again on Thursday at 10 am (1400 GMT) to continue negotiations that have ruffled the copper market at a time of tight supplies and robust demand. Escondida, which accounts for 8 percent of world copper output, was producing at more than 50 percent of normal despite the strike due to a functioning contingency plan, its corporate affairs manager said.
Last week the company estimated it was producing at about 40 percent of normal. On Wednesday the company said it was losing up to $16 million a day in net profit during the strike.
Company officials and some workers have said union leaders want to reach a deal with the mine before the strike enters its fifteenth day, when Chilean law says workers can go back to work if they wish, even if the strike continues.
Spot copper prices in China rose by 375 yuan to 68,100-68,400 yuan a tonne, at a premium to futures prices, in a sign of a tightening market. Nickel futures softened from a new record high reached on Wednesday on tight global stocks and talk that one investor with a short position was being squeezed as the premium for cash nickel above the three-month price hit $3,500.
Nickel ended on Wednesday at $29,200 a tonne and traded at $28,950 a tonne on Thursday. Stocks of nickel in LME warehouses rose a net 354 tonnes to 6,162 on Wednesday after deliveries into Rotterdam and Baltimore totalling 720 tonnes. But the amount available to the market fell to 1,374 tonnes as cancelled warrants metal earmarked for delivery rose to 4,788 tonnes from 3,600 on Tuesday.
The LME said on Thursday that anyone with short positions in nickel falling due from Friday who were unable to make physical delivery could defer for one day at a penalty of $300 per tonne.
"Nickel stocks are at historically low levels and we now have a genuine material shortage. Our first priority is to ensure that trading remains orderly and to prevent the risk of settlement defaults," LME Chief Executive Simon Healed said.