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METALS-Shanghai zinc has worst day since Dec after LME stocks surge

 (Updates prices)
    BEIJING, March 6 (Reuters) - Shanghai zinc futures fell more
than 2 percent on Tuesday, their steepest drop in three months,
tracking a decline in prices on the London Metal Exchange after
LME warehouse inventories climbed.
    The metal, used to galvanise steel, is also coming under
pressure after President Donald Trump said the United States
would impose a tariff of 25 percent on steel imports. 
    A number of countries, including China and Canada, have
criticised the move, sparking talk of a trade war. Trump also
vowed to impose a 10 percent duty on aluminium imports.
    "Trade war fears continue to overhang the markets ...
causing headwinds for LME metals," broker Sucden Financial said
in a note on Tuesday.     
    * SHFE ZINC: The most-traded April zinc contract on
the Shanghai Futures Exchange closed down 2.1 percent at 25,450 
yuan ($4,011) a tonne, in its biggest daily drop since Dec. 6.
It earlier touched 25,210 yuan a tonne, its lowest since Dec.
    * LME ZINC: Three-month LME zinc was little changed at
$3,292.50 a tonne at 0729 GMT, after hitting a 2018 low in the
previous session. Stocks of zinc in LME warehouses MZN-STOCKS
jumped by 59 percent on Monday to 209,050 tonnes, and on-warrant
stocks - those not earmarked for delivery - nearly doubled to
162,825 tonnes. 
    * LME COPPER: London copper rose 0.5 percent to
$6,945 on a weaker dollar. A softer greenback makes metals
cheaper for holders of other currencies and can support prices

    * SHFE METALS: The most-traded April copper contract on the
Shanghai Futures Exchange edged up 0.6 percent to
52,420 yuan a tonne, while lead shed 1 percent.
    * TRUMP TARIFF PLAN: Trump faced growing pressure from
political and diplomatic allies as well as U.S. companies urging
him to pull back from proposed steel and aluminium tariffs,
although he said he would stick to his guns.
    * INDONESIA: Indonesia's President Joko Widodo has
instructed his administration to complete negotiations over the
purchase of a majority stake in Freeport-McMoRan Inc's
local unit by the end of April, a cabinet minister said on
    * COBALT: Australia's Celsius Resources, which has
made Namibia's first cobalt discovery, is aiming to start
production from the remote mine in 2020, the company's managing
director said.
    * For the top stories in metals and other news, click       
    * Asian shares regained some ground and the dollar held
steady versus the yen, supported by receding fears about a
global trade war.
 BASE METALS PRICES                     0729 GMT
 Three month LME copper                     6945
 Most active ShFE                          52420
 Three month LME                          2146.5
 Most active ShFE                          14440
 Three month LME zinc                     3292.5
 Most active ShFE zinc                     25450
 Three month LME lead                     2417.5
 Most active ShFE lead                     18640
 Three month LME nickel                    13460
 Most active ShFE                         102410
 Three month LME tin                       21470
 Most active ShFE tin                     146590
 BASE METALS ARBITRAGE                          
 LME/SHFE COPPER          LMESHFCUc3     1249.86
 LME/SHFE ALUMINIUM       LMESHFALc3     -1387.9
 LME/SHFE ZINC            LMESHFZNc3      629.58
 LME/SHFE LEAD            LMESHFPBc3        53.4
 LME/SHFE NICKEL          LMESHFNIc3     1347.18
($1 = 6.3449 Chinese yuan)

 (Reporting by Tom Daly;
Additional reporting by Manolo Serapio Jr. in Manila
Editing by Joseph Radford and Subhranshu Sahu)