March 12, 2019 / 5:07 AM / 5 months ago

METALS-London metal prices rise on weaker dollar, Brexit boost

 (Adds Shanghai closing prices, updates London prices)
    BEIJING, March 12 (Reuters) - London base metals gained
ground on Tuesday, with copper rising by the most in a week, as
a softer dollar and improving investor sentiment after changes
to a Brexit deal lent support to prices. 
    A weaker greenback makes dollar-denominated metals cheaper
for holders of other currencies.
    "The overall market sentiment is heating up," said Xu Maili,
head of non-ferrous metals research at Everbright Futures in
Shanghai. This is also reflected in gains in the ferrous
complex, equities and crude oil prices, he added.
    Xu remains bullish on copper in the medium term even after
an 8.4 percent gain for the metal so far this year, with
possible fluctuations due to profit-taking, he said in a note.
    "Furthermore, it will take time for the rising copper prices
to be accepted by the downstream industry," Xu added.     
                
    FUNDAMENTALS
    * COPPER: Three-month copper on the London Metal Exchange
 rose as much as 1 percent, the most since March 5, and
was up 0.9 percent at $6,461.50 a tonne, as of 0712 GMT. The
most-traded May copper contract on the Shanghai Futures Exchange
 closed up 0.9 percent at 49,450 yuan ($7,364.33) a
tonne. 
    * COPPER: Production at Chinese miner MMG Ltd's
Las Bambas copper deposit in Peru could fall "in the near-term"
due to a month-long road blockade by a community that was
relocated to build the mine, the company said.
    * BREXIT: European Commission head Jean-Claude Juncker said
on Monday he agreed an updated Brexit deal with British Prime
Minister Theresa May to make the agreement more palatable to UK
lawmakers but warned they would not get a third chance to
endorse it.
    * TRADE: Chinese Vice Premier Liu He held a telephone call
on Tuesday with U.S. Treasury Secretary Steven Mnuchin and U.S.
Trade Representative Robert Lighthizer on key issues in their
trade talks, state news agency Xinhua said.
    * U.S. DOLLAR: The dollar index fell 0.2 percent to
97.07 on a modest improvement in risk appetite.
    * OTHER METALS: Nickel was the biggest gainer in
base metals on the LME, rising 1.6 percent to $13,100 a tonne;
while aluminium added 0.5 percent and zinc,
Monday's top performer, climbed another 1.1 percent.
    * ALUMINIUM: Queues to take aluminium out of LME-approved
warehouses owned by ISTIM UK in Port Klang, Malaysia rose to 229
days in February from 118 days in January and zero days in
December.
            
    MARKETS NEWS    
    * The pound and Asian shares jumped on Tuesday after the
European Commission agreed to changes in a Brexit deal before a
vote in the British parliament on a divorce agreement that has
unnerved financial markets over recent months.    
        
    PRICES    
 BASE METALS PRICES                      0719 GMT
 Three month LME copper                      6461
 Most active ShFE copper                    49460
 Three month LME aluminium                 1858.5
 Most active ShFE aluminium                 13535
 Three month LME zinc                        2770
 Most active ShFE zinc                      21590
 Three month LME lead                      2090.5
 Most active ShFE lead                      17410
 Three month LME nickel                     13085
 Most active ShFE nickel                   102500
 Three month LME tin                        21080
 Most active ShFE tin                      147000
                                                 
 BASE METALS ARBITRAGE                           
 LME/SHFE COPPER             LMESHFCUc3   -948.79
 LME/SHFE ALUMINIUM          LMESHFALc3   -902.22
                                         
 LME/SHFE ZINC               LMESHFZNc3   -425.56
 LME/SHFE LEAD               LMESHFPBc3     454.7
 LME/SHFE NICKEL             LMESHFNIc3   -805.01
                                         
 ($1 = 6.7148 Chinese yuan)

    
 (Reporting by Tom Daly; Editing by Joseph Radford and Sherry
Jacob-Phillips)
  
 
 
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