August 13, 2018 / 2:36 AM / 4 days ago

METALS-London copper sags as dollar strengthens on Turkish crisis

(Updates prices)

By Manolo Serapio Jr

MANILA, Aug 13 (Reuters) - London copper fell on Monday after the dollar rose to a 13-month high against the euro as investors shunned risky assets and sought safe havens amid the Turkish lira’s drop to a record low.

After hitting a record low of 7.24 against the dollar early on Monday, Turkey’s lira found some support after Finance Minister Berat Albayrak said the government has drafted an economic action plan to ease investor concerns while the banking watchdog said it limited swap transactions.

Three-month copper on the London Metal Exchange was down 0.8 percent at $6,142 a tonne by 0707 GMT, slipping for a second session in a row. The most-traded copper on the Shanghai Futures Exchange dropped 0.2 percent to end at 49,730 yuan ($7,239) a tonne.

“While Turkey does not reflect any endemic risk among emerging markets, there could still be some sentiment spillovers into emerging market currencies and risky assets in the near term,” Mizuho Bank said in a note.

However, “with global growth already slow on a structural basis, a recession in Turkey could bite,” the bank said.

* U.S. TARIFFS: U.S. President Donald Trump intensified his spat with Turkey by imposing higher tariffs on aluminium and steel imports, putting unprecedented economic pressure on a NATO ally and deepening turmoil in Turkish financial markets.

* CHILE STRIKE: The main union at Chile’s Caserones copper mine said on Sunday that 98.5 percent of its workers had voted to reject a final offer from mine operator Lumina Copper during mediation. The union said that a strike had been agreed and it would begin on Tuesday at 8am.

* EL TENIENTE: Four of the five labour unions representing workers at the El Teniente copper mine in Chile have accepted the latest contract offer from state mining company Codelco.

* ZINC AND ALUMINIUM: LME zinc hit its lowest since July 30 at $2,524 a tonne, before paring losses to trade at $2,541.50, down 0.2 percent from Friday. Shanghai zinc slid 1.4 percent to settle at 21,240 yuan. LME aluminium dropped 0.8 percent to $2,088 a tonne and Shanghai aluminium was nearly flat at 14,690 yuan.

* RECYCLERS RUSH: Chinese copper fabricators and importers are scrambling to divert or resell cargoes of U.S. copper scrap en route to China after Beijing hit such imports with a 25-percent duty as the trade row with Washington deepens.

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 = 6.8697 Chinese yuan)

Reporting by Manolo Serapio Jr., Editing by Joseph Radford, Sherry Jacob-Phillips and Sunil Nair

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