METALS-Copper ticks lower on weak China data, aluminium up

By Kitco News / June 12, 2019 / www.kitco.com / Article Link


* GRAPHIC-2019 asset returns: (Updates with closing prices)By Eric OnstadLONDON, June 12 (Reuters) - Copper slipped on Wednesdayafter weak data from the economy of top metals consumer China,but other industrial metals prices edged higher on hopes formore stimulus.China reported the worst-ever monthly sales drop in theworld's largest vehicle market, while factory inflation slowedin May as faltering manufacturing hit demand."The stimulus which has been put into the economy since lastyear has not been sufficient to really stabilise it and theChinese government sees more need to stimulate," said analystCarsten Menke at Julius Baer in Zurich."We're looking for a bit of a rebound in global growth inthe second half, in the U.S. and also in China, where we doexpect a stabilisation, and this should provide some upside tometals prices. Positioning has turned quite bearish, a lot ofnegative news is already priced in the market."


Three-month copper on the London Metal Exchange slipped 0.4% to $5,852 a tonne in closing open outcry trading,moving back towards a five-month low of $5,740 touched onMonday.


But LME aluminium added 0.7% to trade at $1,790 inclosing rings, heading away from a 29-month nadir reached onMonday.
* ALUMINIUM PREMIUM: Some Japanese aluminium buyers haveagreed to pay a premium of $108 per tonne for shipments in Julyto September, up 3% from the current quarter, amid tightersupply in Asia, sources said on Wednesday.
* TRADE TALKS: Sentiment has been hit by worries aboutexpected talks between the Chinese and U.S. leaders later thismonth after sources told Reuters there has been littlepreparation for a meeting and expectations were low for progressat ending the trade war. "All of these trade talk uncertainties have put base metalsor commodities space into hostage. If this overarching issue isnot removed or diminished, there's no way for base metals tohave any meaningful direction," said analyst Helen Lau atArgonaut Securities.
* COPPER SMELTER: Zambia's Konkola Copper Mines, owned byVedanta Resources , plans to restart its Nchangasmelter on June 22 , the company said on Wednesday.
* LEAD SPREAD: The premium of cash LME lead over thethree-month contract remained relatively strong at$33.50 a tonne at Tuesday's close, down from $42.50 touched aday earlier, the highest since January 2017 and indicatingshortages of available supplies.


* INDONESIA NICKEL: LME nickel did not trade inclosing rings and was down 0.4% at $11,835 a tonne in electronictrading at 1600 GMT."Reports of Indonesia flooding affecting loading of nickelore at ports as well as production at local NPI (nickel pigiron) mills," broker Marex Spectron said in a note.


* PRICES: Zinc gained 0.1% to close at $2,509, lead shed 0.8% to $1,898 and tin gained 0.7% to$19,300.
* For the top stories in metals and other news, click or <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Mai Nguyen in Singapore. Editing byLouise Heavens and Susan Fenton)

Reuters Messaging: eric.onstad.thomsonreuters.com@reuters.net))

LME price overview COMEX copper futures Base metals news 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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