METALS-Copper hits seven-week high on trade deal hopes

By Kitco News / November 05, 2019 / www.kitco.com / Article Link


* GRAPHIC-2019 asset returns: (Adds aluminium technicals, updates prices)By Eric OnstadLONDON, Nov 5 (Reuters) - Copper climbed to a seven-weekhigh on Tuesday as hopes of a U.S.-China trade deal promptedbearish investors to buy back positions.The Dow Jones industrial average hit a new intra-dayrecord high, the Chinese yuan advanced to a three-month peak andoil also rose after people close to the negotiations said Chinawas pushing U.S. President Donald Trump to remove more tariffsimposed in September as part of a so-called Phase 1 trade deal. "We've seen some positive trade headlines and we'reoptimistic. We think we're going to get a Phase 1 trade deal andthat opens the playbook for Dec. 15 and tariffs to be pushedback," said Citigroup analyst Oliver Nugent."Copper is a real macro story, the fundamentals are taking aback seat and we're dancing around the headlines ... you've seena decent bit of short-covering."Most of the bearish positions in copper are probably linkedto computer-generated algorithms largely used by commodity tradeadvisor (CTA) funds, he added.Three-month copper on the London Metal Exchange (LME) had climbed 1.4% to $5,957 a tonne by 1500 GMT, thehighest since Sept. 16 and on track for its third straight dailygain.

* COPPER SUPPLY: Antofagasta's production cuts in Chile havedoubled to about 10,000 tonnes, it said, citing worker protestsin the South American nation.
* CHINA COPPER: Copper in China's bonded warehouses dropped to a record low of 243,500 tonnes inNovember, monthly data from Shanghai Metals Market shows.
* INDONESIA NICKEL: China's top nickel producer JinchuanGroup will feel some impact from Indonesia's ban on ore exportsfrom 2020 but will be able to plug the supply gap, partly byusing its own mines, a company executive said onTuesday. LME nickel slipped 1% to $16,210 a tonne.
* ZINC SPREADS: LME cash zinc's premium over the three-monthcontract CMZN0-3> rose to $62 a tonne. That is the highest sinceJuly 1, having been in backwardation of $40 at the end ofOctober. The high premium indicates near-term shortages of metalin the LME system.
* ALUMINIUM TECHNICALS: Aluminium has more upside afterbreaking above its nine-month downtrend, said Commerzbanktechnical analyst Axel Rudolph."Further up, the May and July peaks can be spotted at$1,866/$1,871. These represent our upside targets," he said in anote.


* PRICES: LME aluminium rose 0.1% to $1,816 a tonne,zinc gave up 0.2% to $2,535, lead edged up 0.1%to $2,163 and tin was up 0.5% at $16,510.
* For the top stories in metals and other news, click or ($1 = 7.0121 Chinese yuan) (Reporting by Eric OnstadEditing by David Goodman)

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

LME price overview COMEX copper futures 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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