July 4, 2018 / 2:50 AM / 4 months ago

METALS-Copper hits 9-month low amid trade tensions, zinc at 1-year trough

 (Adds analyst comment, updates prices)
    By Manolo Serapio Jr
    MANILA, July 4 (Reuters) - London copper surrendered early
gains and fell to a nine-month low on Wednesday, while zinc hit
its weakest in a year as investors braced for a trade war
between China and the United States.
    China's threatened tariffs on $34 billion of U.S. goods will
take effect from the beginning of the day on July 6, a person
with knowledge of the plan told Reuters, amid worsening trade
tensions between the world's two largest economies.
    Washington has said it would implement tariffs on $34
billion of Chinese imports on July 6, and Beijing has vowed to
retaliate in kind on the same day.
    If a trade war happens, "there will be some serious
ramifications on the global economy," said Meng Jie Wu, an
analyst at CRU consultancy in Beijing.
    Three-month copper on the London Metal Exchange fell
as far as $6,423 a tonne, the lowest since late September, and
was down 0.6 percent at $6,451 by 0734 GMT. On the Shanghai
Futures Exchange, the most-traded copper slid 2.4
percent to close at 50,100 yuan ($7,583.67) per tonne.
    
    * ZINC, NICKEL: LME zinc dropped more than 2 percent
to $2,731.50 a tonne, its weakest since July last year, and
nickel hit a seven-week low of $14,185.
    * CHINA SEEKS ALLIES: China is putting pressure on the
European Union to issue a strong joint statement against
President Donald Trump's trade policies at a summit later this
month but is facing resistance, European officials said.

    * CHINA DATA: Growth in China's services sector accelerated
in June to a four-month high, buoyed by a pickup in new
businesses and a sustained increase in employment, a private
survey showed.
    * CHINA YUAN: China's yuan rose sharply against the dollar,
a day after the central bank assured markets it would keep the
currency stable amid heightened worries about trade frictions,
although stocks remained under pressure.
    * GLENCORE: U.S. authorities have demanded Glencore
hand over documents about its business in the Democratic
Republic of Congo, Venezuela and Nigeria as part of a corruption
probe, sending the mining company's shares down more than 8
percent.
    * FREEPORT: Indonesia has extended a temporary operating
permit for Freeport McMoRan Inc's Grasberg project, the
world's second-biggest copper mine, until the end of the month
while discussions continue over long-term rights.
    
 BASE METALS PRICES                               0734 GMT
 Three month LME copper                               6451
 Most active ShFE copper                             50100
 Three month LME aluminium                          2089.5
 Most active ShFE aluminium                          13955
 Three month LME zinc                               2737.5
 Most active ShFE zinc                               22370
 Three month LME lead                                 2370
 Most active ShFE lead                               19905
 Three month LME nickel                              14255
 Most active ShFE nickel                            112660
 Three month LME tin                                 19675
 Most active ShFE tin                               144550
                                                          
 BASE METALS ARBITRAGE                                    
 LME/SHFE COPPER                LMESHFCUc3          433.48
 LME/SHFE ALUMINIUM             LMESHFALc3        -2038.31
 LME/SHFE ZINC                  LMESHFZNc3          642.72
 LME/SHFE LEAD                  LMESHFPBc3           189.6
 LME/SHFE NICKEL                LMESHFNIc3          941.62
 ($1 = 6.6063 Chinese yuan)

    
 (Reporting by Manolo Serapio Jr.; Editing by Richard Pullin and
Subhranshu Sahu)
  
 
 
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