METALS-Copper steady as growth concerns deepen and trade talks loom

By Kitco News / March 26, 2019 / www.kitco.com / Article Link


* GRAPHIC-2019 asset returns: (Adds closing prices)By Zandi ShabalalaLONDON, March 26 (Reuters) - Copper prices held steady onTuesday as a murky global economic growth outlook sapped demandahead of a new round of trade talks between the United Statesand China this week.


Benchmark copper ended 0.2 percent lower at $6,330 atonne, having touched its lowest in a month in the previoussession before closing 0.4 percent up."On one hand there are concerns about the global economy,but on other hand there are hopes that the trade dispute betweenthe U.S. and China will be solved sooner rather than later,"said Commerzbank analyst Daniel Briesemann."There seems to be higher uncertainty and that's why we'vehad two days of prices going sideways."An inversion of the U.S. yield curve, which is widely viewedas an indicator of an economic recession, stoked fears that theworld's biggest economy was headed for contraction. More immediately, the next round of U.S.-China talks to enda long and damaging trade war kicks off this week as a U.S.trade delegation visits China. PERU: Chinese miner MMG said it expects to declareforce majeure on contracts for copper from its Las Bambasdeposit in Peru after a weeks-long blockade by an indigenouscommunity. COPPER SPREADS: The physical signs were still indicating
plentiful supply as cash copper flipped from a premium to $3 atonne discount over the three-month contract . This wasdown from a $70 a tonne premium touched on March 5."We have known about the MMG issues in Peru for some weeksnow ... it's the logical conclusion that they have declaredforce majeure," said Commerzbank's Briesemann.TECHNICALS: LME copper formed a top at its current Marchhigh of $6,555.50 and should slide to the 200-day moving averageat $6,206.96, said Commerzbank senior analyst Axel Rudolph.LEAD PRICES: Lead hit its lowest in two months at$2,001.50 a tonne even as stocks in LME-approved warehousesremained around 2009 levels at 79,424 tonnes. Atthe close, lead was down 0.9 percent at $1,992.50 per tonne. ZINC: China's refined zinc imports plunged to a two-year lowof 20,350 tonnes in February, customs data showed, owing tounfavourable arbitrage between London and Shanghai. RESTARTS: Miners Rio Tintoand BHP Groupsaid they had begun to resume operations at somefacilities that were halted as two separate cyclones batteredAustralia's northern coastline over the weekend. PRICES: Aluminium rose 0.2 percent to $1,886 atonne, zinc gained 1.5 percent to $2,874, tin shed 0.1 percent to $21,275 and nickel was up 1.2percent at $13,100.<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Tom Daly in BEIJING and Melanie Burtonin MELBOURNEEditing by David Goodman and David Evans)

zandi.shabalala.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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