Copper mired near two-month low

MELBOURNE, Sept 12 (Reuters) - London copper was stuck near its weakest in two months on Monday as the dollar held gains and as investors turn increasingly bearish on the metal given prospects for rising supply.

FUNDAMENTALS

* Three-month copper on the London Metal Exchange was trading flat at $4,630.50 a tonne by 0043 GMT, following 0.7-percent losses from the previous session.

* Shanghai Futures Exchange copper edged down 0.2 percent to 36,540 yuan ($5,472) a tonne.

* U.S. Federal Reserve policymakers on Friday headed towards their policy meeting later this month divided on whether a rate rise is in the offing, with some of the permanent voting members appearing wary of supporting an immediate hike.

* Lundin Mining could double zinc production at its Neves-Corvo mine in Portugal as a big rally in prices and looming deficit of the metal used to rust-proof steel have created the right conditions for an expansion, its chief executive said.

* Chile's state-owned copper miner Codelco said late on Friday that unionized workers at its small Salvador copper mine have accepted a wage offer and ended a strike, which had been ongoing since Monday.

* Hedge funds and money managers speculators sharply boosted their net short position in copper futures and options, in the week to Sept. 6, U.S. Commodity Futures Trading Commission data showed on Friday.

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MARKETS NEWS

* Asian shares looked set to skid on Monday with investors rattled by rising bond yields and talk the Fed might be serious about lifting U.S. interest rates as early as next week.

DATA/EVENTS

No major data expected

PRICES

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

Most active ShFE nickel

Three month LME tin

Most active ShFE tin

($1 = 6.6778 Chinese yuan renminbi) (Reporting by Melanie Burton; Editing by Joseph Radford)

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