METALS-Copper slides as U.S.-China relations deteriorate

By Reuters / November 28, 2019 / www.kitco.com / Article Link

* GRAPHIC-2019 asset returns:* Premium for cash over three-month aluminium around $11/T * Nickel falls to four-month low, breaches 200-day movingaverage (Updates with closing prices) By Pratima Desai LONDON, Nov 28 (Reuters) - Copper prices slipped on Thursdayas deteriorating relations between the United States and Chinacast doubt over prospects for imminent resolution to theprolonged trade dispute between the world's two largesteconomies. Benchmark copper on the London Metal Exchange (LME)ended 0.9% down at $5,892 a tonne. Hopes of agreement on apreliminary deal to end the trade impasse pushed copper to athree-week high of $5,968 on Wednesday. The latest setback came after China warned it would take"firm counter measures" in response to U.S. President DonaldTrump signing into law legislation that supports protesters inHong Kong. "Trump has raised the stakes in the tariff war with China,"said SP Angel analyst John Meyer. "It doesn't look as ifanything is going to be agreed any time soon.

HONG KONG: U.S. legislation requires the State Department tocertify that Hong Kong retains enough autonomy to justifyfavourable U.S. trading terms that have helped it to maintainits position as a world financial centre. CHINA: Prices have come under pressure since the tradedispute started last year because China is the world's largestconsumer of industrial metals. Markets are awaiting surveys of purchasing managers inChina's manufacturing sector for clues to future demand. Thedata due next week is expected to show activity shrank for aseventh consecutive month in November. ALUMINIUM: The premium for cash aluminium over thethree-month contract , at $11 a tonne, has slipped frommore than $13 a tonne, its highest since December 2018. It isexpected to attract metal needed for delivery against LMEcontracts.

Three-month aluminium was down 0.7% at $1,752. NICKEL: Prices of the stainless steel ingredient fell to afour-month low of $13,930 as funds and traders cut longpositions. The sell-off accelerated after prices breached the200-day moving average at $14,305. It closed 2.1% down at$14,010.

CONSUMPTION: Nickel has come under pressure from worriesabout demand from stainless steel mills, mostly located inChina, which account for roughly two thirds of consumptionestimated at about 2.4 million tonnes this year. STOCKS: Historically low inventories of nickel, at less than70,000 tonnes, in LME-registered warehouses as well as cancelledwarrants -- metal earmarked for delivery -- at nearly 34% oftotal stocks are expected to support prices . PRICES: Zinc was down 0.8% at $2,279 and tin gained 0.1% to $16,420. Lead was untraded at the closebut was bid at a little-changed $1,944. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Nickel prices fall on subdued demand from stainless steelindustry ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Pratima DesaiEditing by Elaine Hardcastle and David Goodman)

LME price overview COMEX copper futures 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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