November 20, 2019 / 5:29 AM / 19 days ago

METALS-London copper slips on U.S.-China trade deal uncertainty

(Adds comment, updates prices)

MANILA, Nov 20 (Reuters) - London copper edged lower on Wednesday amid conflicting signals on the Sino-U.S. trade talks, but Shanghai copper jumped to its highest in more than a week after China’s central bank vowed to step up credit support to prop up the slowing economy.

Three-month copper on the London Metal Exchange slipped 0.1% to $5,869.50 a tonne by 0440 GMT.

“The immediate focus remains on the U.S.-China trade talks, and markets seem reluctant to move much in either direction until they are resolved,” ANZ Research analysts said in a note.

U.S. President Donald Trump issued a fresh threat against China on Tuesday, saying Washington would raise tariffs on Chinese imports if no deal was reached with Beijing to end the spat.

Stimulus measures by China, the world’s top consumer of the metal used in power and construction, continued to support prices, however.

The most-traded copper contract on the Shanghai Futures Exchange rose as much as 0.8% to 47,240 yuan ($6,717.57) a tonne, its highest since Nov. 12.

COPPER WEEK: Jiangxi Copper Co , one of China’s biggest copper smelters, needs treatment and refining charges (TC/RCs) of around $75 a tonne and 7.5 cents a pound to avoid losing money, its vice president of trading said on Wednesday.

COPPER WEEK: Freeport McMoRan Inc expects treatment and refining charges for copper concentrates in 2020 to be “well below” last year’s levels as Chinese smelting capacity is expected to rise, a senior company executive said on Tuesday.

TRADE TALKS: A “phase one” trade deal between the United States and China was supposed to be a limited agreement that would allow leaders from both countries to claim an easy victory while soothing financial markets.

HONG KONG CRACKDOWN: The U.S. Senate passed legislation aimed at protecting human rights in Hong Kong amid China’s crackdown on a pro-democracy protest movement that has gripped the vital financial centre for months. The move was condemned by Beijing.

CHINA STIMULUS: China will step up credit support to the economy and push real lending rates lower, central bank Governor Yi Gang said, as policymakers keep monetary policy accommodative to prop up slowing growth.

RATE CUT: On Wednesday, the central bank cut its new benchmark lending rate for the third time since its debut in August, as widely expected.

ALUMINIUM: China will carry out spot checks on safety production in steel and aluminium processing industries from late November to mid-December, the Ministry of Emergency Management said.

LME PRICES: Aluminium was up 0.3%, zinc rose 0.5%, lead gained 0.5%, tin advanced 0.2%, while nickel slipped 0.9%.

ShFE PRICES: Aluminium edged up 0.2%, zinc gained 0.4%, tin rose 0.2%, while nickel lost 0.9% and lead slipped 0.1%.

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

$1 = 7.0323 yuan Reporting by Enrico dela Cruz; Editing by Subhranshu Sahu

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