METALS-Copper snaps 5-day losing streak as dollar slips

By Kitco News / September 05, 2018 / www.kitco.com / Article Link


* China-U.S. trade tensions escalate as deadline looms
* Nickel hits lowest since January, zinc hits two-week low
* GRAPHIC-2018 asset returns: (Updates with closing prices)By Maytaal AngelLONDON, Sept 5 (Reuters) - Copper rose on Wednesday afterfive straight days of losses as a dollar rally paused, but gainswere firmly capped by persistent fears over escalating tradetensions between the United States and top metals consumerChina.A public comment period on the possibility of fresh U.S.tariffs on another $200 billion of Chinese goods ends onThursday, with expectations that the additional levies will beimposed by U.S. President Donald Trump.The dollar has benefited from these tensions, though itslipped on Wednesday, off a two-week high hit in the previoussession, making dollar-priced metals less costly for non-U.S.investors.


"The metals complex is focusing on how trade wars damagedemand and that's why prices are largely falling, but trade warswill do more to disrupt supply chains than to hurt demand," saidNitesh Shah, commodities strategist at ETF Securities."The cost of bringing (metals) into the United States isrising, so that's price positive for metals (there). Equally forChina or Europe who are applying higher tariffs, they also facehigher (metals) costs."


* COPPER PRICES: Three-month copper on the London MetalExchange ended up 1 percent at $5,871 a tonne, havinglost 2.5 percent in the previous session.
* A London-based trader said metals had recovered thanks to
a lack of further dollar strength, little follow-through sellingovernight, short covering and consumer buying after holidays. Asecond London-based trader said some selling pressure had beenrelieved after an options expiry.
* OTHER METALS: Stainless steelmaking ingredient nickel closed down 0.2 percent at $12,450 a tonne, having hitits lowest since January, while zinc , used to galvanisesteel, ended up 0.1 percent at $2,419.50, having hit a two-weeklow.
* STEEL: The most active steel rebar future on the ShanghaiFutures Exchange notched up its ninth day of losses out of thepast 11 sessions as worries lingered about slowing demand in theworld's top producer.
* ALUMINA: Alcoa's alumina production has likely beenhit by a four-week strike at its Western Australian operations,the Australian Workers' Union said, raising the prospect of awidening supply deficit in the key aluminium-making ingredient.
* OTHER METALS: Lead closed down 1.4 percent at$2,048.50 a tonne, tin ended flat at $18,825, whilealuminium ended up 0.3 percent at $2,068. The secondLondon-based trader cited bearish sentiment overall inaluminium, saying the metal was being chased up on shortcovering.<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Tom Daly; Editing by David Evans, MarkPotter and Kirsten Donovan)

Messaging: maytaal.angel.thomsonreuters.com@reuters.net)))

LME price overview COMEX copper futures Base metals news All metals news All commodities news Metals diary 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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