METALS-Zinc hits 1-1/2 month low, others recover on trade deal hopes

By Kitco News / May 02, 2019 / www.kitco.com / Article Link


* GRAPHIC-2019 asset returns: (Updates with closing prices)By Eric OnstadLONDON, May 2 (Reuters) - Zinc prices hit their lowest sincemid-March on worries about global demand and as inventoriesclimbed, but other metals were supported by hopes that aU.S.-China trade deal would be agreed.Investors have been worried after data on Tuesday showed
factory growth in top metals consumer China slowed unexpectedlyin April, with a survey on Thursday showing that Euro zonefactory activity contracted for a third month. "I think it's still premature to buy. The current picture isthat the worst is over, but conditions remain weak in the globaleconomy. We need to see some real improvement for metals pricesto really find the bottom," said Gianclaudio Torlizzi, partnerat consultancy T-Commodity in Milan."But in zinc and copper, supplies are still pretty tight, soI think that will keep us from seeing severe losses."


Benchmark zinc on the London Metal Exchange fell 1.5percent in closing open-outcry trading to $2,731 a tonne aftertouching $2,717, its lowest since March 11.


Most industrial metals slumped on Wednesday ascomputer-driven funds sold after an options expiry, withaluminium and lead prices hitting their lowest in more than twoyears.



* ZINC STOCKS: LME zinc inventories rose to88,750 tonnes, the highest since Feb. 15 and up 70 percent overthe past three weeks, LME data showed on Thursday. However,prices are still low by historical levels and have slid by halfsince October.
* HINDUSTAN ZINC: India's Hindustan Zinc , theworld's second-largest zinc miner, expects its output to grow in2019/20 after a drop in the previous financial year.
* TRADE TALKS: Metals prices gained support from a reportthat the United States and China are nearing a trade deal thatwould roll back a portion of the $250 billion in U.S. tariffs onChinese goods.
* COPPER: LME copper dropped 1.1 percent to trade at$6,167 a tonne in closing rings, the lowest since Feb. 15. Theclose is below the 200-day moving average at $6,192, which couldlead to further losses, Torlizzi said.


* ALUMINIUM STOCKS: LME aluminium inventories surged by 92,350 tonnes to 1,227,650 and have climbed by a fifthover the past week to the highest level since Feb. 25.The LME aluminium price , however, shrugged off thestocks increase, rising 0.1 percent to end at $1,816 a tonneafter sliding on Wednesday to its weakest in more than twoyears.
* PRICES: Nickel was bid down 0.04 percent to$12,150 in closing rings, lead gained 1.2 percent totrade at $1,875 and tin slid 1.4 percent to $19,275.


* 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 byElaine Hardcastle and David Goodman)

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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