October 11, 2019 / 2:24 AM / 6 days ago

METALS-Shanghai copper gains on revived trade-talk euphoria

SINGAPORE, Oct 11 (Reuters) - Shanghai copper prices rose on Friday after U.S. President Donald Trump said he would meet with China’s top trade negotiator, but London prices treaded water as investors remained cautious ahead of the final day of trade talks.

The trade dispute between the world’s two biggest economies has weighed on global economic growth and dimmed the demand outlook for industrial metals. A sign of progress in resolving the dispute often supports base metal prices.

The more bullish market mood came after a first day of trade talks between top U.S. and Chinese negotiators that Trump characterised as “very, very good.”

The most-traded copper contract on the Shanghai Futures Exchange was up 0.8% at 46,950 yuan ($6,612.58) a tonne, as of 0146 GMT. While three-month copper on the London Metal Exchange, used widely as a gauge of economic health, was almost unchanged at $5,779.50 a tonne.

Top U.S. and Chinese negotiators wrapped up a first day of trade talks on Thursday as business groups expressed optimism the two sides might be able to ease a 15-month trade war and delay a U.S. tariff hike scheduled for next week.

The talk is due to conclude on Friday.

“We had a very, very good negotiation with China,” U.S. President Donald Trump told reporters after the talks concluded. He reiterated his plans to meet with Liu at the White House on Friday, regarded as a good sign.

Chinese Vice Premier Liu He said that China is willing to reach an agreement with the United States on matters that both sides care about so as to prevent friction from leading to any further escalation, the state news agency Xinhua reported.

FUNDAMENTALS

* PRICES: Most metals on the London Metal Exchange dropped, with aluminium falling 0.2%, nickel down 0.5%, zinc declining 0.7% and lead dipping 0.3%.

* SHANGHAI PRICES: In Shanghai, aluminium, nickel and lead eased 0.1% each, tin sipped 0.4% while zinc rose 1%.

* ZINC: Vedanta Resources said on Thursday it would shut its Skorpion zinc operations in Namibia from early November until the end of February 2020 due to technical problems.

* NYRSTAR/TRAFIGURA: Belgium’s Financial Services and Markets Authority has opened a formal investigation into zinc group Nyrstar, now majority-owned by commodities trader Trafigura.

* ZIJIN: Zijin Mining Group Co Ltd , one of China’s biggest gold miners, expects to miss production targets for gold, copper and zinc this year although it increased output of all three metals.

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

MARKETS NEWS

* Asian shares and U.S. stock futures rose after Trump said he would meet with China’s top trade negotiator, while sterling retreated after rallying on revived hopes of a possible Brexit deal.

DATA/EVENTS AHEAD (GMT)

0600 Germany HICP Final YY Sept

1200 India Industrial Output YY Aug

1400 US U Mich Sentiment Prelim Oct

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 = 7.1001 Chinese yuan) (Reporting by Mai Nguyen, Editing by Sherry Jacob-Phillips)

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