June 12, 2018 / 5:49 AM / 5 months ago

METALS-London copper claws back lost ground on 'positive' Trump-Kim summit

 (Recasts, adds Shanghai closing prices, updates London prices)
    BEIJING, June 12 (Reuters) - London copper shrugged off
early losses to trade flat on Tuesday after U.S. President
Donald Trump hailed a "very positive" summit with North Korea's
Kim Jong Un, while Shanghai copper prices ended lower for the
first time in eight days.     
    U.S. President Donald Trump and North Korean leader Kim Jong
Un pledged on Tuesday to work toward complete denuclearisation
of the Korean peninsula while Washington committed to provide
security guarantees for its old enemy. But a joint statement
signed at the end of their historic summit in Singapore gave few
details on how either goal would be achieved.
    London Metal Exchange (LME) copper prices had propelled to a
4-1/2-year high last week on fears of a strike at BHP's
Escondida mine in Chile. 
    In a statement on Monday, BHP said it was ready to discuss
the "different points of interest" and hoped for a "mutually
beneficial agreement" after the mine's union called for a salary
increase of 5 percent and a one-time bonus of $34,000. 

    Copper investors "remain cautious, with the continued
closure of Vedanta's Tuticorin smelter in India as well as the
potential for strike action at Escondida," ANZ wrote in a note.
         
    FUNDAMENTALS
    * SHFE COPPER: The most-traded August copper contract on the
Shanghai Futures Exchange closed down 0.5 percent at
53,970 yuan ($8,432.42) a tonne.
    * LME COPPER: Three-month copper on the LME slipped
as much as 0.8 percent to $7,196 a tonne, before clawing its way
back up to $7,252, as of 0728 GMT. It fell for two straight
sessions after hitting a 4-1/2-year high of $7,348 on Thursday.
    * IVANHOE: A unit of Chinese state-run conglomerate CITIC
Ltd will buy a near 20 percent stake in Canada's
Ivanhoe Mines for about C$723 million ($555 million),
the companies said on Monday. 
    * ALUMINIUM: A unit of Beijing's Tsinghua University on
Tuesday said it would buy aluminium smelter Xinjiang Tianshan
for an estimated 23.6 billion yuan ($3.69 billion), in the
second major deal in China's aluminium industry in just over two
weeks. {nL4N1TE219]     
    * CANADA: The Canadian province of Quebec will offer C$100
million ($77 million) in loans and guarantees on loans to steel
and aluminium companies hit by recent U.S. tariffs, the
province's economy minister said on Monday.
       
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    MARKETS NEWS    
    *  The dollar jumped to a three-week top on Tuesday and
Asian shares rose as U.S. President Donald Trump said a summit
meeting with North Korea's Kim Jong Un had made "a lot of
progress," boosting hopes of a landmark deal to end a nuclear
standoff on the Korean peninsula.    
        
          
    PRICES    
 BASE METALS PRICES                        0729 GMT
 Three month LME copper                        7248
 Most active ShFE copper                      53960
 Three month LME aluminium                   2317.5
 Most active ShFE aluminium                   14890
 Three month LME zinc                          3212
 Most active ShFE zinc                        24545
 Three month LME lead                        2498.5
 Most active ShFE lead                        20575
 Three month LME nickel                       15340
 Most active ShFE nickel                     115160
 Three month LME tin                          21100
 Most active ShFE tin                        151840
                                                   
 BASE METALS ARBITRAGE                             
 LME/SHFE COPPER              LMESHFCUc3     -64.92
 LME/SHFE ALUMINIUM           LMESHFALc3   -2376.48
 LME/SHFE ZINC                LMESHFZNc3     131.88
 LME/SHFE LEAD                LMESHFPBc3     607.83
 LME/SHFE NICKEL              LMESHFNIc3    -984.76
 
    
($1 = 6.4003 Chinese yuan)

    
 (Reporting by Tom Daly; Editing by Richard Pullin and Sherry
Jacob-Phillips)
  
 
 
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