* GRAPHIC-2019 asset returns: (Updates with closing prices, details)By Zandi ShabalalaLONDON, May 30 (Reuters) - Copper prices fell to theirlowest level in nearly five months on Thursday after a Chinesediplomat ramped up rhetoric that could stoke the trade conflictbetween the United States and China and possibly erode metalsdemand.Provoking trade disputes is "naked economic terrorism",Chinese Vice Foreign Minister Zhang Hanhui said on Thursday,amid a lengthening trade row between the world's top twoeconomies. Tit-for-tat tariffs between the two countries resumedearlier this month, the United States blacklisted China's HuaweiTechnologies and China hinted it may use its dominantposition as an exporter of rare earths as leverage.
"Negotiations appear to have halted and although there hasbeen nothing specific to suggest that there won't be furtherdiscussions, the recent actions from the Chinese indicateeverything is moving in the wrong direction in terms of gettinga deal," said Capital Economics analyst Ross Strachan.The conflict has the potential to sap demand for copper fromChina, which accounts for nearly half of global consumptionestimated at around 24 million tonnes this year.Three-month copper on the London Metal Exchange ended 0.5% lower at $5,852 a tonne, its lowest since Jan. 4.STOCKS: Headline stocks of copper in LME-approved warehousessurged 27,450 tonnes or 15% to 212,450 tonnes, having jumpedabout 60% so far this year. In China, stocks of copper fell 8.4% to 172,266 tonnes,according to latest available weekly data from the exchange onFriday. TIN: Prices for LME tin touched the lowest sinceNovember at $18,630 per tonne, but closed 0.3% higher at $18,775per tonne. Stocks of tin have shot up 60% so farthis week to 2,650 tonnes.TRADE WAR: In a fight against U.S. sanctions that threatento push it out of global markets, Huawei Technologies filed alegal motion seeking to declare a U.S. defence lawunconstitutional. COPPER: Disruptions in top copper producer Chile, politicaland power problems in Zambia and restrictions on scrap importsinto China are expected to weigh on copper supplies in thesecond half of 2019. ZINC: The premium of LME cash zinc over the three-monthcontract eased to $144 a tonne on Thursday aftertouching a 22-year high of $161 the day before, indicatingnear-term shortages in the LME system.COLUMN: The London zinc market is in the grip of the mostprotracted and acute squeeze in 30 years. PRICES: Aluminium fell to its lowest in a week, down0.7% at $1,782 per tonne, zinc rose 0.7% to $2,561, lead slipped 1.6% to trade at $1,803, and nickel rose0.9% by 1636 GMT in electronic trading to $12,155.<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Mai Nguyen in SingaporeEditing by Alexandra Hudson and Ros Russell)
zandi.shabalala.thomsonreuters.com@reuters.net))