October 17, 2019 / 2:39 AM / a month ago

METALS-Copper prices dip on demand concern, economic gloom

SINGAPORE, Oct 17 (Reuters) - Copper prices edged down on Thursday due to worries about a slowdown in global economic growth and falling demand for industrial metals.

Three-month copper on the London Metal Exchange fell 0.1% to $5,724.50 a tonne by 0223 GMT, while the most-traded copper contract on the Shanghai Futures Exchange declined 0.5% to 46,650 yuan ($6,573.11) a tonne.

U.S. retail sales fell for the first time in seven months in September, suggesting that manufacturing-led weakness could be spreading to the broader economy amid an ongoing trade war with China that has dragged to its 15th month.

“The International Monetary Fund warned that global economic risks have risen as central banks lower borrowing costs. The subsequent build-up of financial vulnerabilities could put medium term growth at risk,” said ANZ in a note.

“While (President Donald) Trump still expects a trade deal with China to be signed soon, tensions between the two countries remain fragile. All this created a bearish mood in the base metal market,” ANZ said.

FUNDAMENTALS

* LEAD: Henan Yuguang Gold and Lead, China’s largest lead producer, plans to set up a lead-acid battery production line as part of a downstream expansion, a company official said on Wednesday.

* TRADE TALKS: U.S. and Chinese trade negotiators are working to nail down a Phase-1 deal text for their presidents to sign next month, while U.S. Treasury Secretary Steven Mnuchin said he was prepared to travel to Beijing for more meetings.

* LME FEES: The LME will raise its trading and clearing fees by 8% from January 2020, its first increase in five years to fund new projects and keep up with inflation, it said on Wednesday.

* PRICES: LME aluminium fell 0.1%, nickel declined 0.7%, zinc was down 0.8% while lead rose 0.4%. Shanghai aluminium advanced 0.4%, nickel fell 2.3%, zinc lost 0.9% while lead advanced 1.2%.

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MARKETS NEWS

* Global stocks barely moved as soft U.S. retail sales data raised concerns about the health of the world’s largest economy and risk of global recession, while sterling was volatile as negotiations on a Brexit deal continued.

DATA/EVENTS (GMT)

0830 UK Retail Sales MM, YY Sept

0830 UK Retail Sales Ex-Fuel MM Sept

1230 US Housing Starts Number Sept

1230 US Initial Jobless Claims Weekly

1230 US Philly Fed Business Index Oct

1315 US Industrial Production MM Sept

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 = 7.0971 Chinese yuan renminbi) (Reporting by Mai Nguyen; Editing by Rashmi Aich)

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