METALS-Copper retreats on growing concern over global economy

By Kitco News / February 07, 2019 / www.kitco.com / Article Link


* GRAPHIC-2019 asset returns: (Adds U.S./China news and closing prices)By Eric OnstadLONDON, Feb 7 (Reuters) - Copper prices eased on Thursday asworries over global economic growth remained to the fore, withaluminium also weakening after a major producer warned aboutsofter demand.Zinc, however, bucked the trend as an environmentalcrackdown in China created shortages of refined metal.A steady drum beat of weak economic data in recent weeks,including in top metals consumer China, has stoked fears of aglobal recession.Industrial output in Europe's biggest economy,Germany,registered an unexpected fourth consecutive monthly decline inDecember, data showed on Thursday, while the Bank of Englandsaid Britain faces its weakest economic growth in a decade.Also dampening sentiment was news that U.S. President DonaldTrump and China's Xi Jinping are unlikely to meet before theircountries' March 1 deadline to reach a trade deal. "The macro concerns are still very much there," said BMOCapital Markets analyst Kash Kamal."The surprise has come from emerging markets countries apartfrom China. While Europe is weak, the hopes were for EM ex-Chinato remain relatively robust, but that's weakened as well."Three-month copper on the London Metal Exchange shed0.5 percent to $6,246 a tonne in closing open outcry trading,easing from a two-month high of $6,289.50 earlier in thesession.Trading remained subdued, with markets in China closed forthe week-long Lunar New Year holiday.



* NORSK HYDRO: Norwegian aluminium producer Norsk Hydro warned that an uncertain economic outlook could sapdemand in the coming year. Benchmark LME aluminium dropped 0.7 percent tofinish at $1,894 a tonne.
* ZINC: LME zinc was the top exchange's topperformer, climbing 1 percent to $2,731 a tonne after hitting aseven-month high on Tuesday. LME on-warrant inventories - thosenot earmarked for delivery - have tumbled to their lowest sinceOctober 2007. "Refined metal stocks are dwindling and Beijing is crackingdown on Chinese smelters, which is creating something of abottleneck for concentrates flowing through to refined metal,"Kamal said.


* NICKEL: LME nickel added 0.5 percent to closeat$12,985 a tonne after touching $13,350 on Wednesday, itshighest since Aug. 31, partly on worries about top producer Valeafter last month's collapse of a tailings dam controlled by theBrazilian mining company."This price action seems unjustified in our opinion, withthe majority of Vale's nickel supply outside of Brazil and noneof their six nickel mines utilising the upstream tailingsmethod," Natixis analyst Bernard Dahdah said in a note."We remain bullish on nickel through 2019 ... but believe amove lower is likely in the short term."


* DOLLAR: Weighing on the complex was a firmer dollar index , making dollar-denominated metals more expensive forholders of other currencies.
* OTHER PRICES: Lead fell 0.5 percent to end at$2,080 a tonne while tin slipped 0.2 percent to $20,950.<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Enrico dela Cruz in ManilaEditing by Kirsten Donovan and David Goodman)

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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