October 31, 2019 / 3:01 AM / 15 days ago

METALS-Base metals fall on weak China data, trade worries

SINGAPORE, Oct 31 (Reuters) - Most industrial metals fell on Thursday due to weak manufacturing data from major consumer China, and amid worries about further delays in a Sino-U.S. trade deal.

Factory activity in China shrank for the sixth straight month in October, official data showed, pointing to further pressure on its manufacturers as they grapple with the weakest economic growth in nearly 30 years.

Three-month copper on the London Metal Exchange (LME) fell 0.1% to $5,899.50 a tonne by 0238 GMT. The most-traded copper contract on the Shanghai Futures Exchange (ShFE) fell 0.5% to 47,290 yuan ($6,709.70) a tonne.

Sentiment was also dampened as an effort to end a damaging trade war between the United States and China encountered a new obstacle, when the summit in Chile where they were supposed to meet was cancelled because of violent protests.

The 15-month long trade conflict has hurt global economic growth and demand for base metals. Signs of progress in resolving the conflict between the two countries tend to support base metals prices.

FUNDAMENTALS

* PRICES: LME aluminium declined 0.5%, zinc dropped 1.3% and lead fell 0.7%, while nickel rose 0.3%. ShFE aluminium eased 0.1%, zinc fell 0.9%, lead lost 1%, while nickel advanced 0.6%.

* RATES: The Federal Reserve on Wednesday cut interest rates for the third time this year to help sustain U.S. growth, but signaled there would be no further reductions unless the economy takes a turn for the worse.

* CHILE: Chile’s manufacturing production dropped 1.5% in September, compared with the same month the previous year amid a 5.4% decrease in mining production.

* TRIMET: German aluminium producer Trimet Aluminium plans to return to full-capacity output next year after reductions in 2019, with demand from the automobile sector expected to be strong, an executive board member said.

* PERU COPPER: Peru has given an important green light for Southern Copper Corp’s much-delayed Tia Maria copper mine, but the government cautioned it would not move ahead with the project without the right social and environmental conditions being met.

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MARKETS NEWS

* Asian shares rose and U.S. stock futures edged higher after the U.S. Federal Reserve cut interest rates as expected to keep economic expansion on track.

DATA/EVENTS AHEAD (GMT)

0745 France CPI (EU Norm) Prelim YY Oct

1000 EU HICP Flash YY Oct

1000 EU HICP-X F&E Flash YY Oct

1000 EU GDP Flash Prelim YY, QQ Q3

1000 EU Unemployment Rate Sept

1230 US Consumption Adjusted MM Sept

1230 US Initial Jobless Claims Weekly

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

ARBS ($1 = 7.0480 Chinese yuan renminbi) (Reporting by Mai Nguyen; Editing by Rashmi Aich)

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