November 15, 2019 / 5:31 AM / 23 days ago

METALS-Copper rebounds on revived U.S.-China trade optimism

 (Adds details, updates prices)
    By Mai Nguyen
    SINGAPORE, Nov 15 (Reuters) - Copper prices in London snapped a five-session
losing streak on Friday as comments from a senior U.S. official that Washington
and Beijing are getting close to an interim trade pact lifted hopes of demand
for the metal, used as a gauge of economic health.
    The United States and China are getting close to a trade agreement and talks
are "very constructive", White House economic adviser Larry Kudlow said, while
Beijing said they are holding "in-depth" discussions with Washington.
                        
    Three-month copper on the London Metal Exchange (LME)         was up 0.3% at
$5,832 a tonne, as of 0756 GMT. The contract is set for a weekly drop after
losing a combined 2.7% in the previous five sessions.
    "Despite the prospects of a 'phase one' deal being closer, we believe that
structural differences on a number of issues between the United States and China
will hamper any further progress in resolving the bilateral trade dispute until
at least after the U.S. Presidential elections in November 2020," said Fitch
Solutions in a note. 
    "Consequently, sentiment for base metals will remain weak in the coming
weeks and into 2020, particularly for copper and aluminium where the fundamental
picture continues to disappoint," they added.
    
    FUNDAMENTALS
    * COPPER STOCKS: Copper stocks on LME-approved warehouses fell to a
five-month low, while inventories in warehouses tracked by the Shanghai Futures
Exchange (ShFE) fell to a one-month low of 135,513 tonnes. MCUSTX-TOTAL
CU-STX-SGH
    * LME PRICES: Aluminium         edged up 0.1% to $1,742 a tonne, zinc
        fell 0.4% to $2,387.50 a tonne, lead         declined 0.2% to $2,013 a
tonne and nickel         dropped 1.1% to $14,985 a tonne.
    * SHFE PRICES: ShFE's most-traded copper contract          dipped 0.1% to
46,930 yuan ($6,709.94) a tonne, tracking losses overnight in London, nickel
         dropped 2.4% to 118,470 yuan a tonne, while lead          rose 0.4% to
15,810 yuan a tonne and tin          edged up 0.2% to 134,490 yuan a tonne.
    * INDONESIA NICKEL: Indonesia exported 8.85 million tonnes of nickel ore and
nickel products in October, up 0.7% from a month earlier, while Jan-Oct exports
fell 4% on-year to 73.2 million tonnes, official data showed.             
    * NICKEL STOCKS: Nickel inventories in warehouses tracked by ShFE
SNI-TOTAL-W rose 18% in a week to their highest since May 2018 at 36,277
tonnes, while LME nickel stocks MNISTX-TOTAL have been hovering around an
11-year low.             
    * LEAD: ShFE lead stocks PB-STX-SGH jumped 33% in a week to 38,384 tonnes,
their highest since Aug. 2, while the discount of LME lead cash to the
three-month contract CMPB0-3 expanded to $8 a tonne, a level unseen since
Sept. 24.
    * For the top stories in metals and other news, click       
          or             
        
    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 = 6.9941 Chinese yuan)

 (Reporting by Mai Nguyen; Editing by Shailesh Kuber and Sherry Jacob-Phillips)
  
 
 
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