* Copper touches 2-week high on U.S.-China trade talks
* GRAPHIC-2018 asset returns: (Adds closing prices)By Zandi ShabalalaLONDON, Sept 13 (Reuters) - Copper rose to its highest levelin two weeks on Thursday after China said it welcomed aninvitation by the United States to hold a new round of tradetalks.The world's two largest economies have imposed tariffs on$50 billion of each other's goods in a row that has raised fearsthat demand for industrial metals will weaken. ]Washington is preparing to install further tariffs on $200billion worth of Chinese goods."There is at least some optimism as long as the U.S. isgoing to negotiate, and it seems less likely that they will pullout the bazooka of punishing China with even more importduties," said Quantitative Commodity Research consultant PeterFertig."But Trump could also tweet tomorrow that he's stilldetermined to impose those tariffs on China even while thenegotiations are ongoing and then the market will move onto theother side," he said.Benchmark copper on the London Metal Exchange(LME)finished 0.6 percent higher at $6,033 per ounce, aftertouching its highest since Aug. 30 at $6,074.
STOCKS: On-warrant copper stocks available to the market inLME-registered warehouses fell 7,900 tonnes to 142,525 tonnes.They are down about 60 percent from their 2018 peak in March .SHFE COPPER: The most-traded November copper contract on theShanghai Futures Exchange finished up 2.2 percent atits highest close in two weeks.COPPER PREMIUMS: China copper premiums haverisen to $91 a tonne, the most since February 2016, in a sign ofstrong underlying demand for physical metal.
DOLLAR: The dollar rose against a basket of majorcurrencies. A stronger greenback makes dollar-denominatedcommodities more expensive for holders of other currencies, arelationship used by funds to generate buy and sell signals. ALUMINIUM SPREADS: Cash to three-month LME prices are at a discount of $37.28 a tonne, close to the lowest levelssince July 2015, as the market continues to expect U.S.sanctions on Russia's Rusal to be delayed."We believe the spread could widen further if the currentuncertainty on Rusal supplies continues," ING said in a note.CHINA POLLUTION: China's smog-prone province Hebei said onThursday it will ban blanket production cuts in heavy industryincluding steel, coke, non-ferrous, construction materials,carbon, chemicals and pesticide in the coming winter season. PRICES: Aluminium ended mostly flat at $2,065 pertonne, zinc fell 0.4 percent to $2,360, lead finished 0.8 percent higher at $2,036, tin was broadlyflat at $19,000 and nickel ended down 0.1 percent at$12,605.<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Tom Daly and Maytaal AngelEditing by Edmund Blair and Elaine Hardcastle and Jan Harvey)
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