METALS-Copper rebounds on bargain hunting, trade tensions weigh

By Kitco News / May 14, 2019 / www.kitco.com / Article Link


* GRAPHIC-2019 asset returns: (Updates with closing prices)By Zandi ShabalalaLONDON, May 14 (Reuters) - Copper rebounded on Tuesday asinvestors emboldened by solid supply and demand fundamentalssought bargains after tit-for-tat trade tariffs between theUnited States and China triggered a fall in prices.China said on Monday that it would impose higher tariffs onmost U.S. imports on a revised $60 billion target list, hittingback at a U.S. tariff increase on $200 billion worth of Chinesegoods, only days after markets were expecting a trade deal.Benchmark copper on the London Metal Exchange ended0.3% up at $6,027 a tonne after touching a 15-week low theprevious day."There is inherent uncertainty from a macro perspective butfrom a supply-demand basis this would be a buying opportunity,"said Deutsche Bank analyst Nick Snowdon.


"For the time being there will be a bit of caution until wesee some stability in the trade war."


TRADE WAR: China and the United States have the "ability andwisdom" to reach a trade deal that is good for both, China's topdiplomat said, while U.S. President Donald Trump said he thoughtrecent talks in Beijing would be successful. ELECTRIC VEHICLES: The United States faces stiff challengesas it moves to create its own electric vehicle supply chain,industry analysts say, with the extent of the country's metalreserves largely unknown and only a few facilities to processminerals and produce batteries. ZINC SPREADS: The premium of cash zinc over the three-monthcontract hit its highest since 1997 at $141, signallingworries about nearby supply, owing to large holdings of warrantsand cash contracts.However, zinc prices in the second half of 2019 are expectedto drop as Chinese smelters' output will increase further in thesecond half of this year.
* ZINC TECHNICALS: LME zinc , which closed 1.1%higher at $2,594 a tonne, was likely to stabilise around its200-day moving average at $2,529.50, Commerzbank technicalanalysts said in a note.PRICES: Three-month aluminium rose 2% to $1,845 atonne, lead added 1% to $1,802.5, tin gained2.4% to $19,795 while nickel was bid up 1.1% to $11,900.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS LME ZINC SPREAD ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional Reporting by Mai Nguyen in Singapore, Eric Onstadin London; Editing by Ed Osmond and David Goodman)

zandi.shabalala.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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