METALS-Copper falls for 3rd session on supply, Fed concerns
* Anglo eyes 20,000-25,000 T Brazil nickel output this year
* China bonded copper premiums steady at $170-$200 - Shmet
* Tin prices to be supported by Indonesia rules-Commerzbank
(Adds details, quotes; previous SINGAPORE)
LONDON, Sept 24 (Reuters) - Copper fell for a third straight session on Tuesday on renewed uncertainty about when the U.S. Federal Reserve will start trimming its stimulus programme and as stronger supply hits the market.
Electronic trading on the London Metal Exchange halted due to technical issues. When trade stopped around 0900 GMT, three-month copper was down 0.9 percent at $7,185 a tonne, extending losses of nearly half a percent from Monday.
Copper has given up all its gains sparked by the Fed's surprise decision last week to hold off tapering its debt-buying programme that injects $85 billion of liquidity a month into the U.S. economy, helping to buoy commodities and other markets.
Copper has recovered from a three-year low of $6,602 a tonne touched in June, but is down 9 percent so far this year, trapped in a range of $7,000 to $7,500 since early August.
The most-traded December copper contract on the Shanghai Futures Exchange reversed early gains to end down 0.25 percent at 51,750 yuan ($8,500) a tonne.
"Until the tapering happens, the market's going to continue to focus on it each month," said analyst David Wilson at Citi.
The Fed must continue for now to battle threats to the U.S. recovery, but should still be able to reduce its support for the economy later this year, a central bank policymaker said.
Also weighing on the market was a slightly firmer dollar against a basket of currencies, making commodities priced in the U.S. currency more expensive for buyers in other countries.
Wilson said it was telling that copper failed to get a boost from upbeat data from China on Monday, showing its factory sector grew at the fastest pace in six months in September.
"The market is beginning to realise that China's not doing too badly, but supply growth is overwhelming demand growth and you can see it in the treatment charges."
News emerged last week that Chinese copper smelters are looking for up to a 50 percent increase in annual term treatment and refining charges (TC/RCs) for 2014, encouraged by greater availability of concentrates.
TIN PRICES SEEN SUPPORTED
Analyst Tim Radford of Sydney-based adviser Rivkin said growing supply of copper was hanging over the market, while the end of the commodity supercycle flagged lower demand growth for commodities, and potentially lower prices.
Two of the world's top copper producers, Anglo American and Southern Copper, are talking about teaming up to develop Anglo's $3.3 billion Quellaveco mega mine in Peru, Southern Copper's chief executive said.
Reflecting still steady physical demand for copper, premiums for metal held in China's bonded areas held static at $170 to $200 a tonne on Tuesday, China price provider Shmet said.(http://www.shmet.com/)
Among other metals, tin slipped 0.5 percent to $22,855 a tonne, but Commerzbank expects the market to garner support from Indonesian rules that require producers to sell on a domestic exchange.
"Although the tin price has slipped slightly from its six-month high in recent days and is currently trading at below the $23,000 per ton mark, we do not anticipate any further significant price falls," the bank said in a note.
Elsewhere, Anglo American expects to produce 20,000 to 25,000 tonnes of nickel in Brazil in 2013, the executive president of its Brazilian nickel unit said.
LME nickel, which gave up 1.1 percent to $13,800 a tonne, has been by far the worst performer among LME base metals this year, as supply grows and stainless steel producers turn to a cheaper substitute.
Prices are down more than 18 percent so far this year, compared to aluminium, the second-worst performer, with losses of less than 13 percent in the year to date.
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Three month LME tin ($1=6.1210 Chinese yuan)
(Additional reporting by Melanie Burton; Editing by Dale Hudson)