June 29, 2018 / 2:44 AM / 4 months ago

METALS-Zinc slips, set for worst quarter since 2015

    BEIJING, June 29 (Reuters) - Zinc fell back in London and
Shanghai on Friday after jumping in the previous session on the
prospect of Chinese smelters cutting output by 10 percent in
response to lower zinc prices and treatment charges, a key
source of revenue.
    The metal, used to galvanise steel, is on course to shed
11.8 percent in London and 5.3 percent in Shanghai in the second
quarter, which in both cases would mark its worst quarter since
the third quarter of 2015.  
    LME zinc is also set for a drop of 7 percent in June alone,
which would be its steepest monthly drop since November 2015.
   
   FUNDAMENTALS
    * ZINC: Zinc on the London Metal Exchange was down
0.5 percent at $2,882 a tonne as of 0221 GMT, having ended up
0.7 percent on Thursday. The most traded August zinc contract
 on the Shanghai Futures Exchange (ShFE) edged down 0.04
percent to 23,215 yuan ($3,498.40) a tonne. 
    * COPPER: Three-month copper on the LME was flat at
$6,620.50 a tonne and on track for a 1.4 percent dip this
quarter. ShFE copper fell by 0.7 percent but is still
set for a 1.8 percent gain over the three months.
    * OTHER METALS: Shanghai nickel is set for its best
quarter since the contract was launched in 2015, with a 17.8
percent rise, while lead is poised to add 16.4 percent
this quarter amid an environmental crackdown in China. 
    * TC/RCs: 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.
    * RUSAL: Shareholders at sanctions-hit Russian aluminium
producer Rusal elected a new board of directors on
Thursday in an effort to appease the U.S. and get the
restrictions lifted.
    * VALE: Brazilian miner Vale <VALE3.SA< said on Thursday it
would pay 557.7 million reais ($144.42 million) in the second
half of the year to restore the environment and communities
damaged by a 2015 disaster at Samarco, a joint venture it has
with BHP Billiton.
    * For the top stories in metals and other news, click       
 or     
        
    MARKETS NEWS    
    * Asian shares remained near nine-month lows on Friday
despite small gains on Wall Street overnight, as ongoing
concerns over global trade frictions dampened sentiment, though
a move to ease foreign investment curbs in China could boost
markets there.    
        
    DATA AHEAD (GMT)
    0600  Germany     Import prices May
    0600  Germany    Retail sales May
    0645  France    Consumer spending May
    0645  France       Producer prices May
    0800  Germany   Unemployment rate June
    0830  UK           GDP Q1
    1230  U.S.      Personal income May
    1345  U.S.         Chicago PMI June
        
    PRICES    
 BASE METALS PRICES                       0221 GMT
 Three month LME copper                       6619
 Most active ShFE copper                     51410
 Three month LME aluminium                  2150.5
 Most active ShFE aluminium                  14110
 Three month LME zinc                         2882
 Most active ShFE zinc                       23210
 Three month LME lead                         2413
 Most active ShFE lead                       20485
 Three month LME nickel                      14790
 Most active ShFE nickel                    116020
 Three month LME tin                         19675
 Most active ShFE tin                       143950
                                                  
 BASE METALS ARBITRAGE                            
 LME/SHFE COPPER             LMESHFCUc3     276.26
 LME/SHFE ALUMINIUM          LMESHFALc3   -2470.21
 LME/SHFE ZINC               LMESHFZNc3     415.48
 LME/SHFE LEAD               LMESHFPBc3     681.77
 LME/SHFE NICKEL             LMESHFNIc3      -14.9
    
 ($1 = 6.6359 Chinese yuan)

    
 (Reporting by Tom Daly; Editing by Gopakumar Warrier)
  
 
 
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