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Mai Nguyen

METALS-Shanghai zinc shines on low stockpiles; trade hopes

Nov 16 2018

(Updates prices, recasts throughout) By Mai Nguyen SINGAPORE, Nov 16 Shanghai zinc rallied on Friday as stockpiles tied to the London Metal Exchange (LME) fell to a decade-low level. Metals markets mainly kept some of their gains made on signs of some easing in the trade war between the United States and China. "(The) trade tension has been weighing on the base metals sector for the past six months, so this latest move represents some hope that there is light at the end of the tunnel," ANZ analysts said in a note. Prices rose in China on Friday and in London on Thursday on reports that China submitted a written response to U.S. demands for trade reforms. However, the gains were muted on Friday in London after a senior U.S. official expressed concerns about the trade items China was unwilling to negotiation on. The most-traded January zinc contract on the Shanghai Futures Exchange rose as much as 3.3 percent to 21,645 yuan ($3,117.53) a tonne, its highest intra-day level since Oct. 30. It closed up 2.7 percent at 21,515 yuan. The gains in China followed a 3-percent overnight rally in zinc on the London Metal Exchange . LME zinc only rose 0.4 percent at $2,586 a tonne by 0729 GMT. * ZINC STOCKS: LME zinc stocks on Nov. 15 fell to 125,400 tonnes, the lowest since 2008, latest data showed, while on-warrant or available stocks hit their lowest since February. * CHINA OUTPUT: Zinc output in October from China, the world's top producer of the metal, fell 7.6 percent from a year earlier to 501,000 tonnes, official data showed on Thursday. * COPPER TC/RCs: Chinese copper smelter Jiangxi Copper and miner Antofagasta agreed 2019 copper treatment and refining charges (TC/RCs) at $80.80 a tonne and 8.08 cents a pound in the first big deal for next year, lower than a 2018 benchmark of $82.25 a tonne and 8.225 cents a pound. "The concluded annual TC/RCs for 2019 reflect much better supply and demand fundamentals globally. We expect copper prices to be well supported by the recent developments and outlook," Argonaut Securities said in a note. * Chile's state copper agency Cochilco lowered its average copper price prediction for this year by 3 cents to $2.97 per pound on Thursday in its second negative projection in six months. * Copper was up 0.2 percent at $6,194.50 a tonne in London , and ended up 0.8 percent to 49,580 yuan in Shanghai . 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 = 6.9430 Chinese yuan) (Reporting by Mai Nguyen; Editing by Christian Schmollinger)

METALS-Copper edges down as China loan growth disappoints investors

Nov 13 2018

(Adds China data, quotes, details) By Mai Nguyen SINGAPORE, Nov 14 London three-month copper prices edged down on Wednesday as disappointing Chinese credit growth capped gains on optimism over U.S.-China trade talks and Chinese investment growth. China's industrial output and investment growth beat forecasts, suggesting a flurry of support measures may be starting to take hold, but other indicators pointed to continued pressure on the economy. Retail sales slowed more than expected, while growth in October real estate investment eased to a 10-month low and home sales fell again as developers held back expansion plans in the face of softening demand. "There's a slight improvement in investment that showed the government's physical support as they have promised, but ... it's not satisfactory because the loan growth number is very disappointing," said analyst Helen Lau of Argonaut Securities. Loan growth in top copper consumer China slowed sharply in October, despite pressure by regulators on banks to help keep cash-starved companies afloat, pointing to further weakening in the economy in coming months. * COPPER: Three-month copper on the London Metal Exchange was down 0.2 percent at $6,060.5 a tonne, as of 0334 GMT, while Shanghai's most-traded copper futures contract edged up 0.1 percent to 48,950 yuan ($7,044.99) a tonne. * U.S.-CHINA TRADE: U.S. President Donald Trump's top economic adviser Larry Kudlow said on Tuesday that "it's pretty clear now" that Trump will meet with Chinese President Xi Jinping at the Group of 20 industrialized nations meeting in Argentina later this month. "It's a mixed bag (of positive and negative news), that's why commodities prices are not moving much," Lau said. * CHALCO/YUNNAN METALLURGICAL: Chalco's copper unit Aluminum Corp Of China said it has received a 51 percent stake in Yunnan Metallurgical Group from state-owned Assets Supervision and Administration Commission of Yunnan. * CHINA ALUMINIUM OUTPUT: China's primary aluminium output fell for a third straight month in October, as low aluminium prices prompted smelters to cut production even before government-mandated winter restrictions kick in. * GLOBAL MARKETS: Oil prices struggled for traction on Wednesday after sinking on worries about weakening world demand and oversupply, while global shares sagged with slowing growth concerns overshadowing potential positives such as Brexit progress. 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 = 6.9482 Chinese yuan) (Reporting by Mai Nguyen, Editing by Sherry Jacob-Phillips)

METALS-Copper rebounds amid U.S.-China trade optimism

Nov 13 2018

SINGAPORE, Nov 13 London copper climbed nearly 2 percent on Tuesday and other metals edged higher, boosted by news that China's top trade negotiator was preparing to visit the United States ahead of a meeting between the two countries' leaders.

METALS-Copper firms, other metals under pressure as growth risks drag

Nov 12 2018

SINGAPORE, Nov 13 London copper edged higher on Tuesday after slipping to a 1-1/2-week low earlier in the session, but aluminium and nickel stayed close to multi-month lows as investors worried over slower global demand.

METALS-Nickel extends losses to hit 11-mth low on weak steel demand

Nov 12 2018

SINGAPORE, Nov 12 Nickel on both the London and Shanghai exchanges on Monday decreased further towards their lowest in around 11 months, pressured by worries of slowing Chinese demand for steel.

METALS-Copper, aluminium prices steady ahead of U.S. Fed statement

Nov 08 2018

SINGAPORE, Nov 8 Copper and aluminium prices were steady on Thursday after results of the U.S. midterm elections came in as expected and ahead of a policy statement from the U.S. Federal Reserve.

METALS-Copper, aluminium hold steady ahead of Fed statement

Nov 08 2018

SINGAPORE, Nov 8 Copper and aluminium prices were mixed on Thursday, along with other base metals, after results of the U.S. midterm elections came in as expected and ahead of the Federal Reserve's policy statement.

METALS-London copper rises as dollar drops on Democrat's gains in U.S. elections

Nov 07 2018

(Updates Shanghai closing prices, global markets and U.S. dollars) By Mai Nguyen SINGAPORE, Nov 7 London copper rebounded from a two-day losing streak on Wednesday as the dollar declined after the Democrats won control of a house in Congress during the U.S. mid-term elections, with the weaker currency potentially boosting demand for the metal. For dollar-denominated copper contracts on the London Metal Exchange (LME), the weaker greenback could spur purchases by buyers paying in other currencies. "One of the headwinds for base metals has been the dollar being strong and that's partly the result of the extra stimulus the Trump administration pumped into the economy and rising interest rates," said Guy Wolf, global head of market analytics at Marex Spectron. Trump and his fellow Republicans expanded their majority in the U.S. Senate, but his party lost their majority in the House of Representatives. The results are a setback for Trump after a campaign that became a referendum on his leadership. "If these results are perceived to weaken the ability of the Trump administration ... it's fair to think there's scope for the U.S. dollar to reverse some of the moves over the last couple of years," Wolf said. * COPPER: Three-month copper on the LME edged up 0.1 percent to $6,152 a tonne, as of 0713 GMT, and the most-traded copper contract on the Shanghai Futures Exchange ended 0.4 percent down to 49,470 yuan ($7,139.35) a tonne. * EQUITIES, DOLLAR: Wall Street stock futures and Asian shares lost steam on Wednesday, while the dollar weakened versus the euro and sterling after Democrats won control of the U.S. House of Representatives. * FED MEETING: Investors were also waiting for the outcome of this week's policy meeting by the U.S. Federal Reserve, with some analysts not expecting another rate hike this month but looking for clues on future policy tightening. * OTHER METALS: LME aluminium , lead and tin all edged higher, while in Shanghai, lead , nickel , and zinc ended lower. Shanghai aluminium prices gained. * FUNDAMENTALS: Analysts have said the U.S.-China trade war has capped gains of copper prices despite supportive fundamental factors. "There's a disconnect between the micro fundamentals and the macro sentiment at the moment in base metals," Wolf at Marex Spectron said. 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 = 6.9292 Chinese yuan) (Reporting by Mai Nguyen; Editing by Christian Schmollinger)

METALS-London copper rebounds as Democrats win control of U.S. House

Nov 07 2018

(Adds analyst comment, updates prices) By Mai Nguyen SINGAPORE, Nov 7 London copper rose on Wednesday after a two-day slide as Democrats captured control of the U.S. House of Representatives at the midterm elections, which could weaken President Donald Trump's agenda. "One of the headwinds for base metals has been the dollar being strong and that's partly the result of the extra stimulus the Trump administration pumped into the economy and rising interest rates," said Guy Wolf, global head of market analytics at Marex Spectron. "If these results are perceived to weaken the ability of the Trump administration ... it's fair to think there's scope for the U.S. dollar to reverse some of the moves over the last couple of years," Wolf said. * COPPER: Three-month copper on the London Metal Exchange edged up 0.5 percent to $6,189 a tonne, as of 0456 GMT, and the most-traded copper contract on the Shanghai Futures Exchange eased 0.1 percent to 49,590 yuan ($7,157) a tonne. * U.S. ELECTIONS: Democrats rode a wave of dissatisfaction with President Donald Trump to win control of the U.S. House of Representatives on Tuesday, giving them the opportunity to block Trump's agenda and open his administration to intense scrutiny. * EQUITIES, DOLLAR: Wall Street stock futures and Asian shares held earlier gains in choppy trade on Wednesday, while the dollar seesawed versus the euro and yen in a volatile session, after Democrats won control of the U.S. House of Representatives. * FED MEETING: Investors were also waiting for the outcome of this week's policy meeting by the U.S. Federal Reserve, with some analysts not expecting another rate hike this month but looking for clues on future policy tightening. * OTHER METALS: LME aluminium , lead and nickel all edged higher, while in Shanghai, lead and zinc were weaker. * FUNDAMENTALS: Analysts have said copper prices have been held back by the U.S.-China trade war despite supportive fundamental factors. "If you look at the underlining physical market, particularly in copper, it's pretty tight ... There's a disconnect between the micro fundamentals and the macro sentiment at the moment in base metals," Wolf at Marex Spectron said. 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 = 6.9287 Chinese yuan) (Reporting by Mai Nguyen; Editing by Gopakumar Warrier)

METALS-London copper ticks up, focus on U.S. mid-term elections

Nov 06 2018

(Adds closing prices) By Mai Nguyen SINGAPORE, Nov 6 Copper edged higher on Tuesday after last session's deep fall but gains were capped as investors stayed on the sidelines ahead of the U.S. mid-term elections and uncertainty over the Washington-Beijing trade deal. Investors are generally expecting the opposition Democrats to take over the House of Representatives in Tuesday elections, while President Donald Trump's Republican Party is tipped to retain the Senate. A political gridlock between the White House and Congress could hinder Trump's pro-business agenda and raise political instability. "If you approach mid-term election ... you may just want to stay on the sideline. It's a wait-and-see game," said Dominic Schnider of UBS Group in Hong Kong. COPPER: Three-month copper on the London Metal Exchange edged up 0.2 percent at $6,201 a tonne, as of 0729 GMT, and the most-traded copper contract on the Shanghai Futures Exchange closed down 0.7 percent to 49,740 yuan ($7,189.84) a tonne. SIDEWAY: "Three-month (outlook), we have a sideway move in all of them (base metals) because there's still an overhang on trade concerns on one side, and on the other side, we do see ... in general, the inventories decline which is really favourable," Schnider said. TRADE SOLUTION: China is ready to hold discussions and work with the United States to resolve trade disputes because the world's two largest economies stand to lose from confrontation, Vice President Wang Qishan said on Tuesday. RALLY: After initial optimism about a phone call between U.S. President Donald Trump and Chinese President Xi Jinping, White House economic adviser Larry Kudlow said Trump had not asked for a plan. Kudlow said he was less optimistic than he was previously about reaching a deal with China. HOPES: U.S. President Donald Trump said on Monday China has hurt the United States economically but was ready to make a deal on trade, and that he is open to a fair agreement. 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 = 6.9181 yuan) (Reporting by Mai Nguyen; editing by Naveen Thukral and Rashmi Aich)

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