* GRAPHIC-2019 asset returns: (Recasts, adds closing prices)By Zandi ShabalalaLONDON, June 18 (Reuters) - Copper jumped to a three-weekhigh on Tuesday after U.S. President Donald Trump said tradetalks with China would resume ahead of a meeting at the G20summit, raising hopes for a resolution to the damaging conflict.The tit-for-tat trade war between the world's top twoeconomies has sapped demand for metals and overshadowed strongfundamentals in markets such as copper, analysts say.
"The metals group had been oversold over the last few daysand the trade war news may have prompted some short coveringafter the two presidents agreed to meet at the G20 Summit," saidINTL FCStone analyst Edward Meir."Fundamentals of the metals are constructive but people areconcerned about the demand side."
Benchmark copper on the London Metal Exchange (LME)ended 1.7% higher at $5,945 per tonne, after touching itshighest since in May 28 at $5,974.
Prices were also supported by supply disruptions at one ofthe world's largest mines in Chile and Glencore's Zambiansmelter. "I would say copper disruptions are running slightly aheadof expectation this year," said Colin Hamilton, head ofcommodities research at BMO Capital Markets, adding that thisboosted copper fundamentals.
BMO has forecast a deficit of 260,000 tonnes this year inthe 24-million tonne market, Hamilton said.
CODELCO: Workers at Codelco-owned Chuquicamata mine, whichproduced 320,744 tonnes of copper in 2018, downed tools onFriday after a failed labour deal.Tensions flared on Tuesday when Chilean police fired rubberbullets and tear gas in clashes with miners striking at the mineas the workers tried to block access to a site. COPPER STOCKS: Supporting prices was a slight decline inheadline copper inventories in warehouses monitored by the LME.
They fell 600 tonnes to 250,750 tonnes. Inventories of copper in warehouses registered with theShanghai Futures Exchange have nearly halved since mid-March to139,556 tonnes. INDONESIA COPPER: Indonesian copper miner Amman Mineral NusaTenggara said it expected to export about 236,000 tonnes ofcopper concentrate in 2019, below its export quota, as itincreases supplies to a local smelter. COPPER LONG-TERM: Analysts at BofA Merrill Lynch said theU.S-China trade dispute overshadowed strong copper fundamentals,with steady Chinese demand and falling treatment and refiningcharges.INTEREST RATES: U.S. Federal Reserve is expected to lay thegroundwork for a rate cut later this year at a meeting onWednesday, a day after the European Central Bank indicated apossibility of new rate cuts or asset purchases. PRICES: Aluminium ended 1.3% higher at $1,781 pertonne, zinc finished up 1.7% at $2,512, lead wasup 1.8% at $1,919.50, tin added 1.2% to $19,170, whilenickel was bid about 1.6% higher at $11,775.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Tom Daly; editing by EmeliaSithole-Matarise and David Evans)