By Bloomberg News March 3 (Bloomberg) -- Copper fell in London as Codelco, the world’s largest copper miner, expected to return to full output yesterday after the earthquake in Chile, easing supply concerns. Copper for three-month delivery on the London Metal Exchange declined as much as 1.6 percent to $7,373.75 a metric ton, after gaining 7 percent in the previous three days, and traded at $7,394.75 at 11:41 a.m. in Shanghai. The June-delivery contract on the Shanghai Futures Exchange added as much as 1.5 percent to 60,050 yuan ($8,797) a ton and traded at 59,710 yuan at the midday break. Most mines in Chile are resuming operations after the magnitude-8.8 earthquake on Feb. 27 and ports in San Antonio and Valparaiso are returning to normal. Copper surged to a five-week high in London and by the most in 11 months in New York after the quake. “Supply concerns from the Chile quake are fading and the market is re-focusing on demand, which is yet to pick up in China,” Chen Xiang, an analyst at Dahua Futures Co., said from Shanghai today. Codelco’s Andina mine would reach full production yesterday and its El Teniente mine is probably already at full output after resuming operations the day after the quake, an official said today from Santiago. Anglo American Plc said it resumed production on Feb. 28 at mines in central Chile after partially restoring power cut by the quake. The port of San Antonio, which ships copper from El Teniente, may resume partial operations today, the Ministry of Public Works said in an e-mail. Lackluster Buying Lackluster physical buying has resulted in a sustained contango in Shanghai, Chen said, referring to the situation in which spot prices are lower than futures contracts, usually indicating that demand is lagging behind supplies. Copper stockpiles monitored by the Shanghai exchange expanded to the highest in more than seven years last week. The discount of Shanghai spot copper to futures was about 400 yuan a ton, down from 700 yuan yesterday, according to commodities researcher CBI China Co. “Shanghai has been reluctant to chase gains in London on the Chile quake, so London is expected to retreat to balance the differential,” Zhao Kai, an analyst at Jinrui Futures Co., said from Shenzhen today. Aluminum in London was 0.6 percent down at $2,155 a ton, zinc slumped 2.2 percent to $2,206, lead decreased 1.2 percent to $2,172, nickel retreated 1.3 percent to $21,950 and tin was little changed at $17,100. --Li Xiaowei. With reporting by Heather Walsh in Bogota. Editors: Matthew Oakley, Tan Hwee Ann. To contact the Bloomberg News staff on this story: Li Xiaowei in Shanghai at Xli12@bloomberg.net

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