September 3, 2018 / 7:27 AM / 22 days ago

METALS-London copper hits lowest in more than a week on trade concerns

(Updates prices)

By Melanie Burton

MELBOURNE, Sept 3 (Reuters) - London copper slipped to its lowest in 10 days on Monday as jitters over renewed trade tensions between the United States and China weighed on risk appetite and pushed up the dollar.

U.S. President Donald Trump is likely to impose 25 percent tariffs on $200 billion of additional Chinese goods as soon as this Friday, Citi said in a report.

“U.S.-China trade war escalation is set to drive metals lower in the very near term ... We expect maximum fear regarding trade wars over the coming month, and continue to recommend buying copper, aluminium, palladium and nickel on anticipated weakness over the period.”

FUNDAMENTALS

* London Metal Exchange copper slipped to its weakest since Aug. 23 at $5,950.50, before steadying at $5983.50 a tonne by 0712 GMT. Prices on Friday fell 1.5 percent to take the monthly fall in August to 5.5 percent. It was the biggest monthly drop in two years and the third monthly decline in a row.

* Shanghai Futures Exchange copper fell 0.8 percent to 48,170 yuan ($7,055) a tonne. Trade could be subdued due to a U.S. market holiday on Monday. * LME nickel prices traded flat after having dipped to the weakest since late January, and extending Friday’s 3.7 percent slide.

* CAIXIN: China’s manufacturing activity grew at the slowest pace in more than a year in August, with export orders shrinking for a fifth month and employers cutting more staff, a private survey showed on Monday.

* TRADE DISPUTE: China is still determined to reform and wants to work with all parties to build an open world economy, Chinese President Xi Jinping said on Sunday, reiterating Beijing’s message amid a bitter trade war with Washington.

* CHILE MINING: Chile’s state copper commission Cochilco expects the country’s mining industry to attract a total investment of $65.75 billion spread over 44 operations over the next 10 years, it said in a statement on Friday.

* INVESTORS: Hedge funds and money managers trimmed their net short positions in COMEX copper futures and options, in the latest week, regulatory data showed on Friday.

* ALUMINIUM: China’s Ministry of Commerce has called domestic aluminium foil makers to a meeting in Beijing on Monday to discuss an anti-dumping probe launched by Mexico, people with direct knowledge of the matter told Reuters.

* MARKETS: stocks dipped on Monday on worries about further escalation of the U.S-China trade war and unstable emerging market currencies.

* COMING UP: Euro zone Markit mfg PMI Aug at 0800 GMT

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 = 6.8281 Chinese yuan)

Reporting by Melanie Burton; editing by Richard Pullin and Gopakumar Warrier

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