* Tin and zinc hit lowest since 2016 * Nickel up 50% this year * Premium for cash nickel against 3-month contract at10-year high * GRAPHIC-2019 asset returns: (Updates with official prices) By Pratima Desai LONDON, Aug 27 (Reuters) - Copper prices steadied on Tuesdaybut remained near two-year lows on worries about damage toindustrial activity and demand from the prolonged U.S.-Chinatrade war. Benchmark copper on the London Metal Exchange wasuntraded at the close but bid up 0.9% at $5,682 a tonne.
Prices of the metal used widely in the power andconstruction industries touched $5,624.50 on Friday, its lowestsince June 2017. "We're not seeing a rush for the life rafts in terms ofbearishness, but there is too much uncertainty about how thetrade war will pan out for companies to invest and hire," saidBMO analyst Kash Kamal. "Economic data from major economies is weak and there was nomeaningful progress on the trade war front at the G7 meeting tomake a difference to sentiment in metals markets."
TRADE: U.S. President Donald Trump on Monday predicted atrade deal with China after positive gestures by Beijing,calming global markets that have been roiled by new tariffs fromthe world's two largest economies. The increasingly bitter trade dispute worsened on Friday,with both sides levelling more tariffs on each other's exports.
Trump announced an additional duty on $550 billion oftargeted Chinese goods, hours after China unveiled retaliatorytariffs on $75 billion of U.S. goods. DEMAND: China accounts for about half of global demand forbase metals, which is highly correlated with industrial output. Industrial production in China grew 4.8% year on year inJuly, representing the slowest growth in 17 years. TIN: The price for tin fell to its lowest since May2016 at $15,565 a tonne on sluggish demand from electronicscompanies, which use tin as solder, and the chemicals andbattery industries. Three-month tin traded 0.9% down at $15,750 at the close. NICKEL: Prices of the stainless steel ingredient rose 0.3% to $15,700. Nickel has outperformed other base metalsthis year, soaring 50% on solid demand, technical trading andconcern about supply disruptions. SPREADS: The premium for the cash contract over three-monthnickel climbed to a 10-year high at $70 a tonne, upfrom a $10 discount only two weeks ago. The premium has been fuelled by worries over shortages onthe LME market, where one company is holding between 50% and 79%of nickel warrants . This worry is reinforced by nickel stocks in LME-registeredwarehouses at 150,426 tonnes, about half the levels seen in Maylast year . ZINC: Prices of the metal used to galvanise steel gained 0.9% to $2,274 after touching its lowest since October2016 at $2,221. PRICES: Aluminium slipped 0.5% to $1,760 while lead added 1.5% to $2,100. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Nickel prices ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Pratima DesaiEditing by David Goodman and Jan Harvey)
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