* LME/ShFE arb:
* GRAPHIC-2018 asset returns: (Adds official midday prices, details)By Maytaal AngelLONDON, May 4 (Reuters) - Zinc prices hit their lowest inalmost nine months on Friday, the only base metal to trade innegative territory as investors expect a narrowing of the globalmarket deficit.Three month London Metal Exchange zinc was last biddown 1.1 percent at $2,975 a tonne in official midday rings,having hit its lowest since last August at $2,972. Prices havefallen about 15 percent since peaking above $3,500 mid-February."We see prices drifting. Zinc is still tight but the deficitis shrinking," said Xiao Fu, head of commodity market strategyat Bank of China International. But she added: "It's a healthycorrection, the market will remain right, meaning prices willremain underpinned."Some 880,000 tonnes of additional zinc mine capacity is dueto come on stream this year, meaning the market will be muchless tight, according to the International Lead and Zinc StudyGroup. However, the group still expects a deficit this year of263,000 tonnes. ZINC TECHNICALS: Zinc this week violated the 28-month risingtrend line below the $3,090 area, leading to a sell signal inthe weekly momentum chart which suggests further sellingpressure in the next few weeks, ING said in a note.ZINC TREATMENT CHARGES: The zinc industry agreed a 15percent drop in annual zinc processing fees to $147 a tonne. ING said the slight drop in annual terms will offer somerelief to smelters, and "reflects expectations that mine supplywill soon loosen significantly".ALUMINIUM: Aluminium traded up 1.6 percent in ringsat $2,306 a tonne. The metal is on course for a 4 percent weeklyrise after falling almost 10 percent last week.
SCRAP: The company in charge of inspecting scrap metalshipments from the United States bound for China said it wouldsuspend checks on shipments for one month starting on Friday. CHINA, U.S. TRADE ROW: China and the United States reached aconsensus on some aspects of the countries' trade row, butdisagreements over other issues remain "relatively big". GLOBAL MARKETS: World stocks were set for their biggestweekly loss since the middle of March, while the dollar hoverednear highs hit on its recent rally as investors awaited jobsdata from the United States. CHINA DATA: A flurry of Chinese data in coming weeks isexpected to show the world's second-largest economy remainedstrong in April, underpinned by strong industrial output andexports despite rising trade tensions with the United States. OTHER METALS: Copper traded down 0.1 percent inrings at $6,819 a tonne, lead was last bid up 0.5percent at $2,272, tin was last bid up 0.1 percent at$21,225 while nickel was last bid up 0.7 percent at$13,875.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Tom Daly, editing by Louise Heavens)