March 25, 2019 / 1:38 AM / a month ago

METALS-Base metals fall on U.S. recession concerns

    BEIJING, March 25 (Reuters) - Most base metals moved lower
in early Asian trade on Monday, as investors worried about the
prospect of a recession in the United States, the world's
biggest economy.
    U.S. Treasury 10-year note yields dropped below three-month
Treasury bill yields for the first time since 2007 on Friday
after disappointing U.S. manufacturing data. A yield curve
inversion is seen as a leading recession indicator.
           
    FUNDAMENTALS
    * COPPER: The most traded May copper contract on the
Shanghai Futures Exchange fell as much as 1.6 percent
to 48,300 yuan ($7,191.57) a tonne, its lowest since Feb. 18,
and stood at 48,390 yuan as of 0119 GMT. Three-month copper on
the London Metal Exchange was flat at $6,313 a tonne
after closing down 1.7 percent on Friday.    
    * COPPER: Peruvian police said they have arrested the leader
and two lawyers of an indigenous community, accusing them of
trying to extort Chinese miner MMG Ltd by blocking a
road it uses to transport copper for the past month.

    * COPPER STOCKS: Copper stockpiles in ShFE warehouses
CU-STX-SGH fell slightly to 259,172 tonnes last week after a
rapid build during a seasonal lull in demand.
    * ANTO: Chile's Antofagasta expects to reach an
agreement with miner BHP to help ensure water supply at
its Zalidvar copper mine in the country's northern desert, a
company official told a Chilean newspaper on Friday.

    * OTHER METALS: ShFE metals were down across the board, with
nickel shedding 1 percent, while in London, zinc
, nickel and aluminium edged down 0.3-0.4
percent.
    * ALUMINIUM: China Hongqiao Group said on Friday
that a doubling of alumina sales helped offset lower aluminium
production and prices, leaving its net profit steady in the
second half of 2018.
    * CHINA: China reverted to being a net importer of alumina
in February for the first month since April 2018, while its
scrap metal imports plunged to just 160,000 tonnes, the lowest
in customs website records going back to June 2014. Scrap copper
imports stood at 60,000 tonnes.
    * For the top stories in metals and other news, click       
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    MARKETS NEWS    
     Investors dumped shares and fled to the safety of bonds
while the Japanese yen hovered near a six-week high as risk
assets fell out of favour on growing worries about an impending
U.S. recession, sending global yields plunging.    
        
    DATA AHEAD (GMT)
0900    Germany    IFO Business Climate New March
1330      Brazil        Current Account Feb
1330      Brazil        Foreign Direct Investment Feb        
        
    PRICES    
 BASE METALS PRICES                       0123 GMT
 Three month LME copper                     6310.5
 Most active ShFE copper                     48340
 Three month LME aluminium                  1898.5
 Most active ShFE aluminium                  13675
 Three month LME zinc                         2808
 Most active ShFE zinc                       21755
 Three month LME lead                         2030
 Most active ShFE lead                       16880
 Three month LME nickel                      12985
 Most active ShFE nickel                    100330
 Three month LME tin                             0
 Most active ShFE tin                       147430
                                                  
 BASE METALS ARBITRAGE                            
 LME/SHFE COPPER              LMESHFCUc3   -773.98
 LME/SHFE ALUMINIUM           LMESHFALc3  -1076.97
                                          
 LME/SHFE ZINC                LMESHFZNc3   -643.58
 LME/SHFE LEAD                LMESHFPBc3    575.65
 LME/SHFE NICKEL              LMESHFNIc3  -3027.91
                                          
 
    


($1 = 6.7162 Chinese yuan renminbi)

    
 (Reporting by Tom Daly; Editing by Rashmi Aich)
  
 
 
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