METALS-Copper dips on frustration over U.S.-China trade dispute

By Kitco News / December 12, 2018 / www.kitco.com / Article Link


* GRAPHIC-2018 asset returns: (Adds closing prices)By Maytaal AngelLONDON, Dec 12 (Reuters) - Copper slipped on Wednesday asinvestors shrugged off upbeat comments from U.S. PresidentDonald Trump about a potential trade deal with China, while thedollar hovered near a one-month peak against its peers.


Trump said he would intervene in the Justice Department'scase against a top executive at China's Huawei Technologies ifdoing so would help close a trade deal."Even when you get a glimmer of good news it can easily bereversed by a tweet. Until a trade deal is signed, markets aregoing to be 'glass half empty'. Also some economic data isbeginning to look a bit tired," said William Adams, head ofresearch at Fastmarkets."That said, underlying (supply) fundamentals for copper arestrong and going to improve next year," he added.The dollar steadied near a month high, with the FederalReserve widely expected to raise interest rates at its upcomingmeeting. U.S. rates may be nearing a peak, but relative ratedifferentials still offer some support for the dollar. A stronger dollar makes dollar-priced metals more expensiveto import for countries using other currencies.



* COPPER: Three-month copper on the London Metal Exchange(LME) ended down 0.5 percent at $6,140 a tonne, headingfor falls of around 15 percent this year despite decade-lowstocks at LME warehouses.
* COPPER SHORT POSITIONS: Copper is showing a marginal netspeculative short or sell position of 1.2 percent of openinterest, according to estimates from broker Marex Spectron.


* STEEL: Chinese steel prices ended three days of losses toedge higher, with top steelmaking city Tangshan planning furtherproduction cuts this month as it races to meet its air qualitytarget this year.
* ALUMINIUM: For a column on U.S. tariffs failing to dentChinese aluminium export surge, click:
* ALUMINIUM OUTPUT: "U.S. production is expected to climb 67percent this year, as new aluminium expansion projects comeonline ... adding to a globally oversupplied market," said SPAngel in a note, quoting the Economic Policy Institute thinktank.


* LEAD: Fitch revised down its LME lead forecast for2019 to $2,350 a tonne from $2,450 as prices have underperformedin the second half, with long-term prices to fall on weakerglobal demand and surpluses.
* METALS PRICES: Aluminium ended flat at $1,939 atonne, steelmaking raw material zinc closed down 0.8percent at $2,570, lead ended up 0.1 percent at $1,976,tin closed up 1.1 percent at $19,325. Stainlesssteelmaking ingredient nickel ended 0.2 percent higherat $10,795 a tonne.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Mai Nguyen; Editing by Jane Merrimanand David Evans)

Messaging: maytaal.angel.thomsonreuters.com@reuters.net)))

LME price overview COMEX copper futures Base metals news All metals news All commodities news Metals diary Foreign exchange rates SPEED GUIDES)) Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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