March 5, 2018 / 7:29 AM / 9 months ago

METALS-London copper holds above 2-week low on China optimism

 (Adds comment, detail, and updates prices)
    By Melanie Burton
    MELBOURNE, March 5 (Reuters) - London copper turned flat on
Monday as upbeat comments on China's economy at the annual
opening to parliament underpinned prices, while aluminium and
metals used in steel dropped on concerns over proposed U.S.
trade tariffs.
    "We think base metals, in the absence of an escalating trade
war, is likely to remain range-bound in March, with a slight
downside bias," said analyst Ed Meir of INTL FC Stone.
    "The complex should start to strengthen late in Q2, when the
impact of higher seasonal demand starts to get felt."
    
    FUNDAMENTALS
    * COPPER: London Metal Exchange copper traded flat
at $6,895 a tonne by 0719 GMT, following losses of 0.4 percent
in the previous session. 
    Prices are expected to recover as manufacturing demand
cranks up into the seasonally strongest second quarter. Prices
hit $6,858.50 on Thursday, their weakest since Feb 13. 
    * SHFE COPPER: Shanghai Futures Exchange copper
eased 0.5 percent to 51950 yuan ($8,204) a tonne on Monday.
    * US TRADE TARIFFS: Ministers from the United States, Canada
and Mexico meet on Monday to wrap up the latest round of NAFTA
talks under the shadow of U.S. President Donald Trump's proposed
steep tariffs on steel and aluminium imports.
    * SHFE: Metals that could be hit by the U.S. trade tariffs
slumped. Shfe aluminium and nickel slid around
1 percent, while and zinc dropped 2 percent. 
    On the LME, aluminium and zinc fell half a
percent and nickel dropped 0.8 percent. 
    * CHINA ECONOMY: China aims to expand its economy by around
6.5 percent this year, the same as in 2017, while pressing ahead
with its campaign to reduce risks in the financial system,
Premier Li Keqiang said Monday.
    * ALUMINIUM: Some Chinese aluminium producers that shut
smelters during a winter crackdown on pollution may not reopen
this spring once output curbs are lifted, as planned new
capacity by state-run companies threatens to overwhelm demand
and cut into profits.
    * CURVE: LME aluminium spreads showed easing in supply
tightness mid-year when more China production is expected to
come online, though nearby spreads from cash to March signalled
severe supply stress. CMAL0-3 CMALT-0 
    * COPPER: Hedge funds and money managers cut their net long
positions in COMEX gold and copper contracts in the week to Feb.
27, U.S. Commodity Futures Trading Commission data showed on
Friday.
    * DRC: Democratic Republic of Congo President Joseph Kabila
will meet mining company representatives on Tuesday to discuss a
mining code revision awaiting his signature that would raise
taxes and royalties, the mines minister said.
   * COMING UP: Euro zone Markit services PMI final Feb at 0900
GMT

 BASE METALS PRICES                     0710 GMT           
 Three month LME copper                              6900.5
 Most active ShFE copper                              51940
 Three month LME aluminium                             2140
 Most active ShFE aluminium                           14210
 Three month LME zinc                                3339.5
 Most active ShFE zinc                                25660
 Three month LME lead                                2443.5
 Most active ShFE lead                                18750
 Three month LME nickel                               13340
 Most active ShFE nickel                             101440
 Three month LME tin                                  21585
 Most active ShFE tin                                147620
                                                           
                                                           
 LME/SHFE COPPER                  LMESHFCUc3        1173.49
 LME/SHFE ALUMINIUM               LMESHFALc3       -1433.72
 LME/SHFE ZINC                    LMESHFZNc3         608.96
 LME/SHFE LEAD                    LMESHFPBc3          69.14
 LME/SHFE NICKEL                  LMESHFNIc3        2150.28
 

($1 = 6.3325 Chinese yuan)

    
 (Reporting by Melanie Burton; Editing by Richard Pullin and
Sherry Jacob-Phillips)
  
 
 
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below