August 28, 2018 / 7:19 AM / a year ago

METALS-Copper drops as U.S.-China trade tensions cloud demand outlook

(Updates prices)

By Naveen Thukral

SINGAPORE, Aug 28 (Reuters) - London copper prices slid on Tuesday, falling for three out of four sessions as the U.S.-China trade war raised concerns about economic growth and demand-outlook for industrial metals.


* COPPER: Three-month copper on the London Metal Exchange had dropped 0.3 percent to $6,089 a tonne by 0703 GMT, while the most-traded copper contract on the Shanghai Futures Exchange closed down 0.2 percent at 48,650 yuan ($7,077.39) a tonne.

* TRADE: “As long as trade tensions drag on, the market will remain concerned about its impact on global demand,” said Argonaut Securities analyst Helen Lau. “There is no news-flow on any supply shocks, such as strikes, which could support prices.”

* TALKS: U.S. and Chinese officials ended two days of talks last week with no major breakthrough as their trade war escalated with activation of another round of duelling tariffs.

* DUTIES: The U.S. Commerce Department said on Monday it had made a preliminary determination that imports of certain steel wheels from China were subsidized at rates ranging from 58.75 percent to 172.51 percent, and it would impose duties on the product.

* GROWTH: China’s investment growth, already at record lows, may weaken even further in the future and authorities should step up fiscal and financial measures to give it a boost, the state planner said on Monday.

* INFRASTRUCTURE: Beijing is urging more infrastructure spending as the economy faces both domestic and external risks, such as U.S. tariffs. But the benefits will take time to kick in, with analysts expecting the economy to get worse before it gets better.


Three month LME copper

Most active ShFE copper

Three month LME aluminium

Most active ShFE aluminium

Three month LME zinc

Most active ShFE zinc

Three month LME lead

Most active ShFE lead

Three month LME nickel

Most active ShFE nickel

Three month LME tin

Most active ShFE tin

ARBS ($1 = 6.8740 Chinese yuan)

Reporting by Naveen Thukral Editing by Joseph Radford and Sunil Nair

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