June 28, 2018 / 5:53 AM / 5 months ago

METALS-Shanghai metals claw back more ground after trade war sell-off

 (Adds Shanghai closing prices, updates London prices)
    BEIJING, June 28 (Reuters) - Shanghai base metals prices
rose on Thursday, with lead hitting a 19-month high, as they
continued to recover from a sell-off triggered by trade war
tensions between top metals consumer China and the United
States.
    Lead prices on the Shanghai Futures Exchange (ShFE) rose for
a fourth straight day, by as much as 3 percent to 20,615 yuan
($3,116.45) a tonne, the highest since Nov. 29, 2016, as an
environmental crackdown in top producer China raised fears of
tight supply.      
    "China's lead production will remain under pressure over the
coming years on the back of government-led consolidations and
closures due to environmental concerns," BMI Research wrote in a
note. BMI forecasts that China's lead output will see an average
annual growth of 1.8 percent over 2018-27.
    In contrast, dollar-denominated London metals prices fell
across the board, tracking equities lower and as the greenback
 strengthened, making metals more expensive for holders of
other currencies.
            
    FUNDAMENTALS
    * LEAD: The most-traded August lead contract on the
ShFE closed up 2.9 percent at 20,595 yuan per tonne and is on
course to gain 16 percent in the second quarter, with one
trading day remaining. London lead slipped 0.5 percent
to $2,423.50 per tonne as of 0711 GMT.
    COPPER: The ShFE's most-traded August copper contract
 closed up 0.1 percent at 51,640 yuan a tonne.
Three-month copper on the London Metal Exchange edged
down 0.2 percent to $6,677 a tonne, extending a 0.3 percent fall
in the previous session.
    * COPPER: China's top copper smelters on Thursday failed to
set minimum treatment and refining charges (TC/RCs) for copper
concentrate in the third quarter of 2018, two people with
knowledge of the matter said.
    * OTHER METALS: Shanghai zinc closed up 1.5
percent, nickel added 1.2 percent and aluminium
 nudged up 0.3 percent.
    * ZINC: Australia's New Century Resources is on
track to turn a giant tailings dam into the world's
fifth-biggest source of zinc as it defies doubters to make its
first shipment in August, said Patrick Walta, the mineral
processor's managing director.
    
    * For the top stories in metals and other news, click       
 or     
        
    MARKETS NEWS    
    * Asian stocks slumped to nine-month lows on Thursday as
investors worried that the Trump administration's approach to
trade is harming global economic growth - even as the White
House approach to Chinese investment in U.S. technology
companies appeared to be softening.    
        
    PRICES    
 BASE METALS PRICES                       0707 GMT
 Three month LME copper                       6682
 Most active ShFE copper                     51640
 Three month LME aluminium                  2162.5
 Most active ShFE aluminium                  14180
 Three month LME zinc                         2863
 Most active ShFE zinc                       23090
 Three month LME lead                       2425.5
 Most active ShFE lead                       20565
 Three month LME nickel                      14880
 Most active ShFE nickel                    116220
 Three month LME tin                         19780
 Most active ShFE tin                       144150
                                                  
 BASE METALS ARBITRAGE                            
 LME/SHFE COPPER             LMESHFCUc3     159.28
 LME/SHFE ALUMINIUM          LMESHFALc3   -2451.17
 LME/SHFE ZINC               LMESHFZNc3     528.99
 LME/SHFE LEAD               LMESHFPBc3     709.21
 LME/SHFE NICKEL             LMESHFNIc3    -242.93
 ($1 = 6.6149 Chinese yuan)

    
 (Reporting by Tom Daly; Editing by Sunil Nair and Gopakumar
Warrier)
  
 
 
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