October 30, 2018 / 4:09 AM / 2 years ago

METALS-Zinc, copper fall as fresh U.S. tariffs on China loom

 (Adds Trump comments, updates prices)
    BEIJING, Oct 30 (Reuters) - Zinc and copper prices dropped
on Tuesday, along with other base metals, after U.S. President
Donald Trump warned new tariffs on Chinese goods in the absence
of a trade agreement with China.
    Trump told FOX News Channel's "The Ingraham Angle" that he
thinks there will be "a great deal" with China on trade, but
warned that he has billions of dollars worth of new tariffs
ready to go if a deal is not possible.
    Bloomberg News reported on Monday that Washington was
preparing to announce tariffs on an additional $257 billion of
Chinese goods by early December if talks next month between
Trump and his counterpart Xi Jinping fail.
    Metals prices have been weighed down by tit-for-tat tariffs
imposed by the world's top two economies this year amid concerns
the trade row will hurt demand for these commodities.
    "Falling inventories and rising premiums continue to
indicate the fundamentals remain positive for ... metals," ANZ
wrote in a note. "However, rumours of more U.S. tariffs on
Chinese goods triggered a sell-off."
    Three-month zinc on the London Metal Exchange was
down 0.8 percent at $2,600 a tonne by 0725 GMT and copper
 slipped 0.3 percent to $6,140.
    * SHANGHAI METALS: On the Shanghai Futures Exchange, zinc
 slid 1.9 percent to settle at 21,800 yuan ($3,130) a
tonne, aluminium dropped 0.7 percent to 14,085 yuan and
copper eased 0.4 percent to 49,700 yuan. 
    * COPPER PREMIUMS: The premium for the cash over the
three-month LME copper contract CMCU0-3 was last at $18.50 a
tonne, having hit a three-year high of $47 a tonne on Friday in
a sign of immediate market tightness. 
    * BHP: The world's biggest miner BHP Billiton
 has trimmed its expectations of global growth for next
year and 2020 due to a "lose-lose" result from the U.S.-China
trade conflict.
    * CHINA ECONOMY: China's banking and insurance watchdog will
soon release new rules to boost financing to small companies,
and urge banks to step up support for firms facing temporary
    * CHINA MANUFACTURING: Growth in China's factory sector
likely cooled further in October as domestic demand faltered and
exporters felt a bigger sting from an intensifying trade war
with the United States, a Reuters poll showed.
    * EQUITIES: Asia shares crept higher as China made a fresh
attempt to stabilise its stock markets, but the gains looked
fragile amid fears of a sharp escalation in the U.S.-China trade
war. The dollar held most of its overnight gains against a
basket of major currencies.
 Three month LME copper                           6140
 Most active ShFE copper                         49700
 Three month LME aluminium                        1985
 Most active ShFE aluminium                      14085
 Three month LME zinc                             2600
 Most active ShFE zinc                           21800
 Three month LME lead                             1965
 Most active ShFE lead                           18405
 Three month LME nickel                          11780
 Most active ShFE nickel                         98390
 Three month LME tin                             19100
 Most active ShFE tin                           146680
 BASE METALS ARBITRAGE                                
 LME/SHFE COPPER               LMESHFCUc3        74.27
 LME/SHFE ALUMINIUM            LMESHFALc3     -1936.05
 LME/SHFE ZINC                 LMESHFZNc3       178.36
 LME/SHFE LEAD                 LMESHFPBc3      1627.72
 LME/SHFE NICKEL               LMESHFNIc3      2281.17
($1 = 6.9652 Chinese yuan)

 (Reporting by Tom Daly; Additional reporting by Manolo Serapio
Jr. in MANILA; Editing by Joseph Radford and Subhranshu Sahu)
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