(Updates with closing prices)By Peter HobsonLONDON, May 17 (Reuters) - Copper prices fell for a fifthconsecutive week as the trade confrontation between the UnitedStates and China intensified.Investors fear the dispute will damage economic growth andweaken the outlook for metals demand, with industrial metalsprices down sharply from last summer when it began.
Benchmark copper on the London Metal Exchange (LME)did not trade in closing rings on Friday but was bid down 0.7%at $6,055 a tonne.
The metal used in power and construction has lost around1.2% this week and is trading near Monday's 3-1/2 month low of$6,007.50.
Harsher trade rhetoric from Washington and Beijing waspushing prices lower, Societe Generale analyst Robin Bhar said,adding that copper's solid fundamentals meant prices were likelyto recover to around $6,500 by the end of the year.
TRADE WAR: China struck a more aggressive tone in its tradewar with the United States on Friday, suggesting a resumption oftalks between the world's two largest economies would bemeaningless unless Washington changed course. MEXICO/CANADA: Media reported that Washington was close to adeal to remove tariffs on steel and aluminium imports fromCanada and Mexico. TARIFFS: The White House said it was delaying a decision onwhether to impose tariffs on imported cars and parts for as longas six months. GLOBAL MARKETS/DOLLAR: European and Chinese stock marketsfell and the dollar was near two-year highs against a basket ofmajor currencies, making metals more expensive for non-U.S.buyers. YUAN: China's yuan has slumped around 3.5 percent againstthe dollar since mid-April. China is the world's largestconsumer of metals.CHINA PREMIUMS: Chinese copper import premiums at $47 aredown from $120 in October and the lowest in two years. NICKEL: Cash nickel on the LME flipped to a $21 premiumagainst the three-month contract early on Friday, the highestsince 2011, before dropping back to a discount of $11. Cash zinc traded at a discount of around $80 at the start ofMay. The change suggests there is less immediately availablemetal.
Headline stocks of nickel in LME-registered warehousesmeanwhile slipped to 164,400 tonnes, the lowest since March2013. LME nickel was not included in the closing ringsession but was down 1.3% at $12,015 a tonne in electronictrading.
ZINC: The premium of cash zinc over the three-month contractwas at $150.50 after rising to the highest in more than 20years. Zinc prices finished down 1.4% at $2,600 a tonne.
OTHER METALS: LME aluminium ended down 1.2% at$1,837 a tonne, lead fell 0.6% to $1,826 a tonne and tin closed up 0.2 percent at $19,500 a tonne.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Peter Hobson; Additional reporting by Tom Daly;editing by Louise Heavens and Alexander Smith)