METALS-Copper gains on China stimulus; zinc slips on producer selling

By Kitco News / April 08, 2019 / www.kitco.com / Article Link


* GRAPHIC-2019 asset returns: (Adds Indonesia tin exports, updates with closing prices)By Eric OnstadLONDON, April 8 (Reuters) - Copper prices rose on Monday onnews of fresh stimulus measures in top metals consumer China andhopes for a U.S.-China trade deal.Other industrial metals, such as zinc, were dampened by theprospect of rising supply and producer selling.China said on Monday it would relax residency curbs in manyof its smaller cities and increase infrastructure spending toboost economic growth. On Sunday, China also announced measuresto encourage financing for small and medium-sized businesses."Given those stimulus developments that we've seen over theweekend, the lack of an upward move across the board is quitetelling. We feel the stimulus was already largely factored intothe market and I think this reiterates it," said Ross Strachan,senior commodities economist at Capital Economics in London.Benchmark copper on the London Metal Exchange gained1.2 percent in closing open outcry trading to trade at $6,475 atonne, snapping two days of decline. Some other metals pricesended in the red.


* ZINC PRODUCERS: Three-month LME zinc shed 0.6percent to finish at $2,906 a tonne, partly due to producersseeking to lock in high prices through hedging programmes, saidAlastair Munro at broker Marex Spectron.


"There was evidence of a producer offer via the forwardcurve," he said in a note.
* ZINC STOCKS: On-warrant LME zinc inventories rose 6 percent to 46,725 tonnes after touchingrecord lows in late March, according to daily LME data onMonday, helping to alleviate shortages.
* ZINC OUTLOOK: Strachan of Capital Economics said althoughthe refined zinc market was experiencing shortages, strong mineoutput would soon filter into the refined market."I think zinc is the metal that probably has the mostdownside potential. It's clearly got more genuine tightness thansome of the other metals, but the supply growth that is comingthere should shift that picture sooner rather than later."


LME zinc touched a nine-month peak last week and has gained17 percent so far this year.
* U.S.-CHINA TRADE: The U.S. Trade Representative saidsignificant work remained ahead of fresh talks due this week,while Chinese state media said the two sides had made "newprogress" in the talks."This Chinese comment may well have triggered some of themetals buying," Malcolm Freeman, director and chief executive ofKingdom Futures, said in a note.


* PERU: MMG Ltd said its Las Bambas copper mine inPeru is expected to resume normal operations after an indigenousvillage agreed to end a two-month blockade.
* TIN EXPORTS: Refined tin exports from Indonesia, theworld's top exporter, rose 5 percent in March on an annual basisto 5,735.68 tonnes, data showed.
* PRICES: LME aluminium slipped 1 percent to closeat $1,871 a tonne, nickel was bid 0.5 percent firmer at$13,180, lead added 0.3 percent to $1,991.50 and tin dropped 0.8 percent to $20,825.<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Tom Daly in Beijing and Mai Nguyen inSingapore; Editing by Dale Hudson and Mark Potter)

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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