Copper holds near six-month high after Congo concentrate export ban

Aug. 7 (Reuters) - Copper rose on Friday to linger near a six-month high, after the Democratic Republic of Congo's ban on copper and cobalt concentrate exports raised supply concerns.

Benchmark three-month copper CMCU3 on the London Metal Exchange gained 0.64% to $14,193.50 a metric ton as of 0330 GMT.

The most-traded September copper contract SCFcv1 on the Shanghai Futures Exchange rose 0.56% to 108,210 yuan ($16,037.76) a ton. It touched 108,470 yuan earlier, its highest since May 14.

LME copper surged on Thursday to $14,369.50, its highest since January 29, when the metal hit a record $14,527.50, after Reuters reported the Congo measure.

The order prohibits exports of copper and cobalt concentrates with immediate effect, although one-year waivers may be granted under strategic circumstances.

Its direct effect on refined copper supply is expected to be limited because Congo exports most of its copper as cathode.

The country shipped 696,725 tons of copper cathodes in the first quarter, compared with concentrates containing 18,863 tons of copper metal.

The announcement, however, landed in a market already supported by low inventories, tight concentrate availability and continuing mine disruptions.

"The news reinforced an already bullish market backdrop characterised by low inventories, tight concentrate availability and ongoing supply disruptions," ING analysts said in a note.

LME copper inventories MCUSTX-TOTAL continued to fall. The COMEX copper stocks HG-STX-COMEX, meanwhile, rose to 720,439 short tons (653,571 tons) on Thursday as uncertainty over possible U.S. import tariffs continued to draw metal into the country.

ING said tight physical markets and constrained mine supply should continue to support prices, although disappointment over U.S. tariff measures could prompt consolidation with copper trading close to record highs.