March 11, 2019 / 4:03 AM / a year ago

METALS-Zinc climbs on falling inventories, China lending pledge

 (Adds comment, updates prices)
    BEIJING, March 11 (Reuters) - Zinc led the London Metal
Exchange complex higher on Monday amid dwindling inventories and
a pledge from China's central bank to increase loans after a
sharp drop in bank lending in February.
    The metal, used to galvanise steel, has risen more than 11
percent in London so far in 2019 as zinc stocks at
LME-registered warehouses have halved to below 60,000 tonnes
    In the short term, sentiment over shrinking stocks continues
to ferment "but the medium- and long-term oversupply trend has
not yet been broken" for zinc, Jinrui Futures wrote in a note.
    LME zinc prices should trade in a range of $2,700-$2,900 a
tonne this week, the Chinese brokerage added.
    * ZINC: Three-month LME zinc rose as much as 1.5
percent to $2,750.50 a tonne, and stood at $2,749.50 as of 0708
GMT. The most-traded zinc contract on the Shanghai Futures
Exchange closed up 1 percent at 21,540 yuan ($3,204.31)
a tonne.
    * ZINC TC: Global trader and miner Glencore has
struck a deal with its Canadian subsidiary Noranda Income Fund
on the terms of zinc treatment charges for the coming year, but
did not disclose the fees.
    * LME: The LME is launching seven new cash-settled futures
contracts on Monday, including hot-rolled coil (HRC) steel,
alumina and cobalt.
    * OTHER METALS: Lead, zinc's sister metal, was the
next-biggest gainer, adding 1.1 percent in London. LME copper
 nudged up 0.3 percent to $6,412 a tonne, while ShFE
copper closed up 0.1 percent at 49,190 yuan a tonne.
    * COPPER: China's unwrought copper imports fell in February
to their lowest in 11 months, while copper concentrate imports
tied the all-time monthly record, signalling the world's top
copper consumer is churning out more metal itself.
    * FREEPORT: The Indonesian government has approved one-year
export allowances for copper concentrate for miners PT Freeport
Indonesia and PT Amman Mineral Nusa Tenggara.
    * ALUMINIUM: Some Japanese aluminium buyers have agreed to
pay a premium of $105 per tonne for shipments in April to June,
reflecting higher local spot premiums, four sources directly
involved in the pricing talks said.
    * For the top stories in metals and other news, click       
    *  Asian shares inched up as Chinese markets rebounded on
hopes of more policy support for the slowing economy, but
surprisingly weak U.S. employment data raised doubts about the
strength of the global economy and limited gains.   
 BASE METALS PRICES                      0710 GMT
 Three month LME copper                    6412.5
 Most active ShFE copper                    49170
 Three month LME aluminium                 1871.5
 Most active ShFE aluminium                 13525
 Three month LME zinc                      2751.5
 Most active ShFE zinc                      21535
 Three month LME lead                        2111
 Most active ShFE lead                      17465
 Three month LME nickel                     13130
 Most active ShFE nickel                   102220
 Three month LME tin                        21335
 Most active ShFE tin                      146900
 BASE METALS ARBITRAGE                           
 LME/SHFE COPPER             LMESHFCUc3   -898.44
 LME/SHFE ALUMINIUM          LMESHFALc3  -1019.18
 LME/SHFE ZINC               LMESHFZNc3    -399.2
 LME/SHFE LEAD               LMESHFPBc3    337.04
 LME/SHFE NICKEL             LMESHFNIc3  -2735.86
($1 = 6.7222 Chinese yuan renminbi)

 (Reporting by Tom Daly; Editing by Sherry Jacob-Phillips and
Shreejay Sinha)
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