(Updates with closing prices)
* Zinc backwardation touches 20-year high
* GRAPHIC-2018 asset returns: By Zandi ShabalalaLONDON, Nov 30 (Reuters) - Copper prices steadied on Fridayahead of a meeting of global leaders at the G20 summit, where along-standing trade disputebetween China and the United Statesis expected to take centre stage.Tit-for-tat trade tariffs have rattled global markets andsapped demand for base metals, in some cases overridingsupportive factors such as falling stocks."The market is, to a great extent, discounting the chance ofa breakthrough in talks between the U.S. and China over theweekend," said Commerzbank's head of commodities research EugenWeinberg, adding that Chinese data added to the generallacklustre performance of metals on Friday.China's official Purchasing Managers' Index (PMI) fell to a2016 low of 50 in November, missing market expectations and downfrom 50.2 in October. Three-month copper on the London Metal Exchange(LME) closed 0.2 percent down at $6,198 a tonne, ending barelychanged on the week.Aluminium finished 0.9 percent up at $1,958.
TRADE DEAL: U.S. President Donald Trump, Canadian PrimeMinister Justin Trudeau and Mexico President Enrique Pena Nietosigned a new trade agreement on Friday known as the UnitedStates-Mexico-Canada Agreement (USMCA). CHALCO SUPPLY CUTS: Aluminum Corp of China(Chalco) is cutting 470,000 tonnes of annual output, itsaid on Friday as Chinese aluminium prices sank to a two-yearlow. ALUMINIUM: Norwegian metals company Norsk Hydro expects global primary aluminium demand growth to slow next yearand says it is being hit hard by a production slowdown at a keyalumina plant in Brazil. ZINC SPREADS: Falling stocks pushed the premium for cashzinc over the three month price to $101 a tonne, its highestsince 1998. STOCKS: Inventories of zinc in LME-monitored warehouses areclose to a 10-year low of 88,600 tonnes. In warehouses monitoredby ShFE, zinc stocks fell 25 percent from last Friday to 26,779tonnes.CODELCO: Chile's Codelco, the world's largest copperproducer, said mine output fell 3 percent in the first ninemonths of the year as ore grades fell sharply. STEEL: The United States is moving to moderate its steeltrade tariffs but countries in Europe and beyond are wary ofreducing protection for their steelmakers while U.S.-China tradetensions prevail. OTHER METALS: Zinc ended at a one-week high of$2,542 a tonne, up 2.9 percent, while lead finished 2.1percent up at $1,970. Tin fell 0.7 percent to $18,400and nickel gained 1.3 percent to $11,200.<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Tom DalyEditing by Louise Heavens and David Goodman)
zandi.shabalala.thomsonreuters.com@reuters.net))