METALS-Copper steadies after nearing $11,000, heads for weekly gain

(Recasts with analyst comment, changes byline, updates prices) By Tom Daly Oct 24 (Reuters) – Copper rallied toward $11,000 per metric ton on Friday before losing steam but was still on course for a weekly rise amid renewed optimism over trade talks between the United States and China, as well as ongoing concerns over a shortage of supply. Benchmark three-month copper on the London Metal Exchange was up 0.3% at $10,886.50 as of 0915 GMT. It had earlier climbed as much as 1.1% to $10,969, close to the 16-month high of $11,000 touched on October 9. The metal used in power and construction was on course to record a 2.6% gain this week. "I think copper will carry on … purely because there is a developing shortage as a result of the mud rush at Grasberg and the ongoing need for copper, particularly in China but around the world," said SP Angel analyst John Meyer. Freeport's Grasberg mine in Indonesia has been shut since the incident on September 8. LME copper stocks of 136,350 tons were at their lowest since late July. Meyer said there was potential for a squeeze in copper like the one seen in zinc this week, where Chinese smelters playing the London-Shanghai arbitrage risk getting caught out because of a lack of physical metal. China's Communist Party concluded its Fourth Plenum on Thursday, vowing to focus on technological innovation and to bolster consumption. White House press secretary Karoline Leavitt meanwhile confirmed U.S. President Donald Trump would meet Chinese counterpart Xi Jinping next Thursday in South Korea. With gold prices easing from a record high, "there is definitely a bit more attention going back into the base metals," Meyer said. Aluminium dipped 0.2% to $2,856.50 a ton, after touching $2,883.50, its highest since May 2022 on supply fears. Zinc slipped 0.3% to $3,008.50, while nickel fell 0.5% to $15,290, lead gained 0.1% to $2,012.50 and tin climbed 0.2% to $35,740. (Reporting by Tom Daly; additional reporting by Dylan Duan and Lewis Jackson; Editing by Harikrishnan Nair, Janane Venkatraman and Vijay Kishore)

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