December 11, 2018 / 5:06 AM / 10 months ago

METALS-London metals rise on softer dollar, U.S.-China trade talks

 (Adds Shanghai closing prices, updates London prices)
    BEIJING, Dec 11 (Reuters) - London base metals recouped some
of the previous session's losses on Tuesday, lifted by a weaker
dollar and confirmation that U.S.-China trade talks are still
ongoing despite a recent diplomatic row over the arrest of a top
executive of telecoms firm Huawei.
    A weaker greenback makes dollar-denominated metals cheaper
for holders of other currencies and can support prices.
    All five key London base metals are on track to post a
yearly drop in 2018, with copper and zinc both down more than 20
percent year-to-date on concerns the U.S.-China trade friction
will hurt demand.
    "Negative market sentiment stemming from the U.S.-China
dispute has outweighed tight fundamentals for base metals,"
Fitch Solutions said in a 2019 commodities outlook, noting that
stocks at London Metal Exchange warehouses continued to fall.   
         
    FUNDAMENTALS
    * COPPER: Three-month LME copper was up 0.7 percent
at $6,130 a tonne, by 0718 GMT, after shedding 0.9 percent in
the previous session. The most-traded February copper contract
on the Shanghai Futures Exchange closed up 0.1 percent
at 49,090 yuan ($7,142.13) a tonne.
    * TRADE: China and the United States discussed the road map
for the next stage of their trade talks on Tuesday, during a
telephone call between Chinese Vice Premier Liu He and U.S.
Treasury Secretary Steven Mnuchin and Trade Representative
Robert Lighthizer.
    * CHILE: Chilean copper production rose by 6 percent
year-on-year in January-October to 4.74 million tonnes due to
the stronger performance of BHP's Escondida mine, but state
copper miner Codelco posted a 3.4 percent drop in output to 1.45
million tonnes.
    * VEDANTA: India's environmental court on Monday said it
will issue its judgment in a week on whether to allow Vedanta
Ltd to re-open its copper smelter, which was closed
earlier this year after 13 people died when police fired on
protesters.
    * USD The dollar index edged 0.1 percent lower to
97.139. At one stage in overnight trade, it had fallen to
96.364, its lowest since Nov. 22, driven by a growing view that
the Federal Reserve could pause its rate hike cycle sooner than
previously thought.
    * OTHER METALS: Aluminium and zinc both
added 0.4 percent, while lead climbed 0.6 percent as LME
metals rose across the board. Excluding copper, yuan-denominated
ShFE metals all moved lower.
    * For the top stories in metals and other news, click       
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    MARKETS NEWS    
    * Chinese shares rose on Tuesday after Beijing confirmed it
was still in trade talks with Washington, but investor
confidence remained fragile in Asia after Britain's prime
minister postponed a Brexit vote, sending the pound to near
20-month lows.    
        
    PRICES
 BASE METALS PRICES                       0721 GMT
 Three month LME copper                       6129
 Most active ShFE copper                     49080
 Three month LME aluminium                  1943.5
 Most active ShFE aluminium                  13625
 Three month LME zinc                       2577.5
 Most active ShFE zinc                       20995
 Three month LME lead                       1965.5
 Most active ShFE lead                       18370
 Three month LME nickel                      10820
 Most active ShFE nickel                     88840
 Three month LME tin                         18955
 Most active ShFE tin                       144360
                                                  
 BASE METALS ARBITRAGE                            
 LME/SHFE COPPER             LMESHFCUc3      63.61
 LME/SHFE ALUMINIUM          LMESHFALc3   -1831.68
 LME/SHFE ZINC               LMESHFZNc3      -72.1
 LME/SHFE LEAD               LMESHFPBc3    1408.15
 LME/SHFE NICKEL             LMESHFNIc3    1154.88
    
($1 = 6.8733 Chinese yuan)

    
 (Reporting by Tom Daly; Editing by Sherry Jacob-Phillips and
Subhranshu Sahu)
  
 
 
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