May 21, 2019 / 5:39 AM / a month ago

METALS-London copper climbs as U.S. eases Huawei restrictions

 (Adds Shanghai closing prices; updates London prices)
    BEIJING, May 21 (Reuters) - Prices of copper and most other
industrial metals rose on the London Metal Exchange (LME) on
Tuesday after the United States temporarily eased some trade
restrictions on Chinese telecoms giant Huawei.
    Last week, Washington added Huawei Technologies Co Ltd
         and 68 entities to an export blacklist that makes it
nearly impossible for the Chinese company to purchase goods made
in the United States, escalating Sino-U.S. trade tensions and
weighing on metal prices.
    "The metals have all picked up off their lows for now,"
tracking a rally in equities markets, Malcolm Freeman, director
of Kingdom Futures, wrote in a note.  
    "Metal is continually being withdrawn from the LME warehouse
system and at some point the pressure could trigger a huge
turnaround in most of the metals," Freeman added.
            
    FUNDAMENTALS
    * COPPER: Three-month LME copper rose as much as
0.6% and was up 0.2% at $6,042.50 per tonne as of 0721 GMT,
after closing down 0.4% in the previous session. The most-traded
July copper contract on the Shanghai Futures Exchange
edged lower 0.1% to close at 47,700 yuan ($6,904.04) a tonne.
    * COPPER: The global world refined copper market showed a
surplus of 74,000 tonnes in February, compared with a 33,000
tonnes deficit in January, the International Copper Study Group
said.
    * ALUMINIUM: Norwegian metals maker Norsk Hydro has
been given the go-ahead by a Brazilian federal court to resume
full output from the company's Alunorte alumina refinery.
Aluminium closed down 0.3% in Shanghai and was flat in
London.
    * WAREHOUSING: The LME has dismissed a complaint from miner
and commodity trader Glencore over its inability to take fast
delivery of aluminium from warehouses owned by ISTIM UK in Port
Klang, Malaysia, two sources familiar with the matter said.

    * OTHER METALS: Nickel, used to make stainless
steel, rose as much as 1.4% in London to $12,140 per tonne as
China's ferrous complex jumped, while Shanghai zinc
fell 0.8%.
    * COLUMN: Confusing signals cloud London nickel market: Andy
Home
    * ZINC SPREADS: The premium of LME cash zinc over the
three-month contract CMZN0-3 stood at $148.25 a tonne on
Monday, not far off a 22-year high of $151 per tonne last week.
    * For the top stories in metals and other news, click       
 or     
        
    MARKETS NEWS    
    *  Asian shares won some respite, although fears of a
further escalation in tensions kept investors on edge.
            
    PRICES            
 BASE METALS PRICES                       0719 GMT
 Three month LME copper                       6043
 Most active ShFE copper                     47700
 Three month LME aluminium                  1797.5
 Most active ShFE aluminium                  14245
 Three month LME zinc                         2577
 Most active ShFE zinc                       20670
 Three month LME lead                       1816.5
 Most active ShFE lead                       16140
 Three month LME nickel                      12035
 Most active ShFE nickel                     98100
 Three month LME tin                         19400
 Most active ShFE tin                       145230
                                                  
 BASE METALS ARBITRAGE                            
 LME/SHFE COPPER              LMESHFCUc3    539.27
 LME/SHFE ALUMINIUM           LMESHFALc3    181.11
                                          
 LME/SHFE ZINC                LMESHFZNc3     146.3
 LME/SHFE LEAD                LMESHFPBc3   1486.79
 LME/SHFE NICKEL              LMESHFNIc3    2080.8
                                          
 ($1 = 6.9090 Chinese yuan)

    
 (Reporting by Tom Daly, Editing by Sherry Jacob-Phillips and
James Emmanuel)
  
 
 
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