February 11, 2019 / 7:58 AM / 5 days ago

METALS-Most base metal prices fall as growth, trade worries weigh

* Shanghai zinc hits 2-wk low; Shanghai lead down 3.8 pct

* No talks between Trump, Xi before March trade deadline

* LME metals down led by zinc; copper falls over 1 pct (Adds comments, updates prices)

By Enrico Dela Cruz and Muyu Xu

MANILA/BEIJING, Feb 11 (Reuters) - Most base metals fell on Monday, the first trading session for the Chinese market after a week-long national holiday, with Shanghai zinc tracking a sustained drop in London prices amid worries about global growth and the U.S.-China trade dispute.

A new round of trade talks began in Beijing on Monday, after the most recent set of negotiations concluded in Washington last week without a deal and with the top U.S. negotiator declaring that a lot more work needed to be done.

“... the absence of a planned meeting between the two heads of state before (the March 1 deal deadline) is overshadowing sentiment,” ANZ said in a note, referring to U.S. President Donald Trump and Chinese President Xi Jinping.

Shanghai zinc hit its lowest in more than two weeks and Shanghai lead dropped 3.8 percent, while LME metals dropped across the board, with a strong dollar also dampening the mood.

FUNDAMENTALS

* The most-traded zinc contract for March delivery on the Shanghai Futures Exchange fell as much as 3.3 percent, its sharpest intraday drop in 11 weeks, before settling down 3.1 percent at 21,610 yuan ($3,191.84) a tonne when the market closed at 0700 GMT.

* London zinc fell 2.3 percent at $2,642 a tonne by 0719 GMT.

* ZINC SPREAD: Cash zinc has moved from a premium to a discount against the three-month LME contract MZN0-3 for the first time since September, suggesting shortages in nearby supply are easing.

* Zinc could be more volatile before demand from downstream users re-emerges in March, CITIC Futures analysts said in a note in Mandarin.

* TRADE: U.S. negotiators are preparing to press China this week on longstanding demands that it reform how it treats American companies’ intellectual property in order to seal a trade deal that could prevent tariffs from rising on Chinese imports.

* DOLLAR: The dollar stayed near a six-week high against a basket of currencies as fresh worries over U.S.-Sino trade tensions and global growth pushed investors towards the safety of the greenback.

* A strong greenback makes dollar-denominated metals more expensive for holders of other currencies.

* SHANGHAI PRICES: Copper ended nearly flat at 48,190 yuan a tonne; aluminium fell 1.1 percent to 13,315 yuan, nickel closed up nearly 2 percent at 100,350 yuan, lead plunged 3.8 percent to 16,770 yuan, and tin was 1.3 percent higher at 150,500 yuan.

* COPPER: Chilean state miner Codelco said on Saturday it hoped to soon restart operations at its northern Chuquicamata copper mine a day after heavy rains forced its suspension.

* IRONORE: China iron ore futures rose to a record on Monday, the first session after a week-long national holiday, on concerns that supply from Brazil, the country’s second-largest ore supplier, may decline after a fatal dam accident at a Vale mine.

* COLUMN: Looking for answers from Dr Copper? He’s confused as well: Andy Home

* For the top stories in metals and other news, click or

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 = 6.7704 Chinese yuan)

Reporting by Enrico Dela Cruz and Muyu Xu; editing by Subhranshu Sahu

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