LONDON - Copper held at two-week highs on Wednesday as the dollar weakened and the market awaited a resolution to wage talks at the world’s largest miner of the industrial metal.

BHP’s Escondida mine in Chile said on Tuesday it had made a final offer to the union representing its rank-and-file workers that includes a beefed up contract signing bonus and a 1.5 percent increase in wages.

There was no immediate response from the union, which had asked for a 5 percent pay rise.

LME copper was bid 0.2 percent lower at $6,280 per tonne after failing to trade in official rings. The metal used in power and construction jumped the most since January on Tuesday.

“It’s not a done deal yet,” said Aneeka Gupta, associate director at ETF Securities, referring to the Escondida wage talks.

“If the offer is rejected the company will then hold five days of government-mediated talks and that could also be extended. The price today is a reaction to the waiting period.”

Failure to reach a labour deal at Escondida last year led to a 44-day strike that jolted the global copper market.

The possibility of another strike there pushed benchmark copper prices in London to a near 4-1/2 year high of $7,348 a tonne on June 7, before fears that a U.S.-China trade war could crimp demand pushed the price below $6,000 tonne last week.

CHINA STIMULUS: Beijing vowed on Tuesday to pursue a more “vigorous” fiscal policy, including cutting taxes, as authorities stepped up efforts to support growth amid rising economic headwinds.

The move would boost demand for copper and other metals in the world’s top consumer, China, analysts say.

DOMINANT POSITION: Copper prices have been underpinned by a large position controlling 50-79 percent of available LME copper inventories, according to LME data.

ALUMINIUM STOCKS: The amount of cancelled aluminium inventory — stock earmarked for delivery — rose 23,175 tonnes, mainly from Busan, taking on-warrant stocks to 939,975 tonnes.

JAPAN AUTOMOBILES: Japan’s aluminium industry is more concerned over possible U.S. import tariffs on automobiles that could impact a wider range of the country’s industries than the U.S. duties already imposed on the light metal, the head of a trade body said on Wednesday.

ZINC: Morgan Stanley said zinc was oversold in the first half of the year but is expected to rebound in the remainder of the year due to its deficit and because the peak demand season is about to start.

LME zinc was bid down 0.4 percent to $2,606 after rising 2.4 percent in the previous session.

PRICES: Aluminium was bid 0.6 percent lower at $2,073, lead was bid down 0.4 percent to $2,152, tin added 0.8 percent to $19,830 in official rings while nickel was bid up 0.2 percent to $13,625.