(Updates prices, adds details)

LONDON (AFX) - Base metals rose, lead by copper, as the market waited for confirmation that the four-week long strike at Chile's Escondida mine is indeed over with workers prepared to vote on management's new pay offer.

At 11.20 am, LME copper for three-month delivery was at 7,615.00 usd a tonne, up from 7,450.00 usd at the close yesterday, while nickel was up at 27,950.00 usd a tonne against 27,500.00 usd.

Other metals also gained.

Zinc was at 3,420.00 usd against 3,340.00 usd, lead was at 1,238.00 usd against 1,215.00 usd, aluminium was at 2,505.00 usd against 2,485.00 usd and tin was at 8,970.00 usd against 8,850.00 usd.

Copper fell yesterday on reports a preliminary agreement had been reached to end the strike at Escondida, the world's largest copper mine. But prices later rebounded as follow through selling ebbed.

"Last night after prices broke below the 100 day moving average we saw some buying coming in and that has followed through today," said Standard Bank analyst Michael Skinner.

Skinner said that strengthing prices amid news of the strike deal is surprising and likely a result of traders being sceptical about the deal's outcome and waiting for confirmation of the deal.

Workers are scheduled to vote on the new pay offer at 5.00 pm and Skinner said prices could well dip after this, although he warned that some in the market fear a generous pay offer at Escondida could encourage strikes at other mines.

Nickel, which lost almost 3 pct yesterday after a drop in the level of cancelled warrants resulted in more stock becoming available, has likewise recovered today on yet another fall in LME inventories.

The LME said today inventories, already at critically low levels, fell by another 720 tonnes. The metal touched a record 29,950 usd last week amid falling inventories and an ongoing strike at Voisey's Bay since July.

Looking ahead, BaseMetals.com analyst William Adams said a host of economic data due out in the US this week may reinforce fears of a slowdown in US growth, which would in turn impact metals demand and pressure prices.

He countered, however, that "demand for metals is currently holding up well and may well receive a fillip from industrial users once business activity picks up later in September".

maytaal.angel@afxnews.com ma/abr/ma/gp

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