METALS-Copper drifts to 1-week low as U.S.-China tensions rekindled

By Kitco News / December 05, 2018 / www.kitco.com / Article Link

(Updates with closing prices)By Eric OnstadLONDON, Dec 5 (Reuters) - Copper fell to its lowest level ina week on Wednesday after comments by U.S. President DonaldTrump stoked more worries about trade tensions with top metalsconsumer China.Most other industrial metals were in the red due to concernabout growth in China and after the country's currency slipped.Markets were unconvinced when China expressed confidence onWednesday that it could reach a trade deal with the UnitedStates, after Trump renewed warnings he would revert to moretariffs if the two sides cannot resolve their differences."We're seeing a bit of red, mainly to do with Trump'scomments about liking tariffs, plus the renminbi weakened afterhaving strengthened during the past several days, that basicallydid the damage," said Ole Hansen, head of commodity strategy atSaxo Bank in Copenhagen."Copper touched the upper end of its range but failed tobreak above yesterday and then the tariff talk sent it lower."


Three-month copper on the London Metal Exchange closed down 0.6 percent at $6,174 a tonne, after touching$6,142, the lowest since Nov. 28.



* ZINC: LME benchmark zinc rose 1.2 percent to endat $2,619 a tonne, underpinned by shortages in the refinedsector that have whittled down inventories.


"The speculative short in zinc is one of the smaller shortsof the complex at 4.4 percent of open interest," Alastair Munroat broker Marex Spectron said in a note.


* ZINC STOCKS/SPREADS: LME zinc inventories fell further to 110,700 tonnes, down more than half sincemid-August to the lowest since January 2008.The premium of cash zinc over the three-month contract hit another record high of $122 a tonne, indicatingsevere shortages of nearby material.
* STEEL: China's construction steel rebar jumped more than 4percent, providing support to steel-linked metals zinc andnickel. LME nickel added 0.8 percent to finish at$11,225 a tonne.
* BHP/NICKEL: BHP received approval from the localAustralian government to develop the Venus nickel mine that willfeed its Nickel West battery chemicals business.
* U.S. DOLLAR: The greenback edged up, puttingfurther pressure on metals as commodities priced in dollarsbecame more expensive for holders of other currencies.
* ALUMINIUM TECHNICALS: Aluminium slipped 0.3percent to close at $1,969 a tonne. However, it recently brokeabove a descending channel, which opens up a move towards$2,007, St?(C)phanie Aymes, head of technical analysis at SocieteGenerale, said in a note."This must be reclaimed for denoting signs of a largerrebound towards $2,060."
* PRICES: Lead shed 1.2 percent to finish at $1,983and tin was barely changed, up 0.03 percent at $19,180.<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Mai Nguyen in Hanoi; Editing by MarkPotter and Kirsten Donovan)

Reuters Messaging: eric.onstad.thomsonreuters.com@reuters.net))

LME price overview COMEX copper futures Base metals news All metals news All commodities news 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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