June 20, 2018 / 2:55 AM / 2 years ago

METALS-London copper bounces off three-week low, but trade worries drag

 (Adds nickel and China output data, updates prices)
    By Manolo Serapio Jr
    MANILA, June 20 (Reuters) - London copper rebounded from a
three-week low on Wednesday after losing nearly 2 percent in the
previous session, although a deepening trade row between China
and the United States capped any recovery in risk appetite.
    Nickel, up more than 1 percent, was the top gainer while
other metals including aluminium and zinc also edged up, but
most were not far above multi-week lows reached on Tuesday.
    "While the (trade) tariffs in themselves don't derail the
narrative of global economic growth, the prospect of further
punitive measures taken by both the U.S. and China certainly
heightens that risk," Commonwealth Bank of Australia analyst
Vivek Dhar wrote in a report. 
    Three-month copper on the London Metal Exchange was
up 0.2 percent at $6,855 a tonne by 0710 GMT, after initially
hitting $6,807, its weakest level since May 31. The most-traded
August copper contract on the Shanghai Futures Exchange
closed down 0.6 percent at 51,980 yuan ($8,036) a tonne.
    * TRADE ROW: China has underestimated U.S. President Donald
Trump's resolve to impose more tariffs unless it changes its
"predatory" trade practices, a White House trade adviser said.

    Trump threatened on Monday to hit $200 billion of Chinese
imports with 10 percent tariffs if Beijing retaliated against
his previous targeting of $50 billion in imports, aimed at
pressuring China to stop stealing U.S. intellectual property.
    * RUSSIA RETALIATES: Russia said it would impose import
duties on U.S. road-building machinery, a measure likely to help
Russian oligarch Oleg Deripaska, who was hit by U.S. sanctions
and controls Russia's biggest maker of road-building equipment.

    * RUSAL: Sanctions-hit Russian aluminium producer Rusal
 said it had started shipping bauxite from its
Dian-Dian bauxite project in Guinea to its alumina refineries in
other countries.
    * CHINA COPPER: China's refined copper output rose 15.5
percent from a year ago to 767,000 tonnes in May, government
data showed.
    * GRAPHITE: Base metals explorer Metals Australia
has signed a preliminary deal to develop a graphite mine in
Canada in partnership with a Chinese supplier to the battery
industry for an unspecified amount of funding.
    * OTHER METALS: LME nickel jumped 1.2 percent to
$14,835 a tonne after hitting a three-week low on Tuesday.
Aluminium rose 0.6 percent to $2,183.50 a tonne after
touching $2,167.50 on Tuesday, its weakest since April 10. Zinc
 added 0.7 percent to $3,022.50, recovering from the
prior session's six-week low.
    * SHANGHAI: In Shanghai, aluminium ended 0.6
percent weaker at 14,200 yuan a tonne, but off an 11-week low, 
and zinc eased 0.5 percent to 23,505 yuan.
    * MARKETS: The dollar steadied against a basket of
currencies, although persistent worries about the U.S.-China
tariff rift kept currencies on edge. Asian stocks rebounded.

 BASE METALS PRICES                               0710 GMT
 Three month LME copper                               6855
 Most active ShFE copper                             51980
 Three month LME aluminium                          2183.5
 Most active ShFE aluminium                          14200
 Three month LME zinc                               3022.5
 Most active ShFE zinc                               23505
 Three month LME lead                                 2422
 Most active ShFE lead                               19975
 Three month LME nickel                              14835
 Most active ShFE nickel                            113750
 Three month LME tin                                 20475
 Most active ShFE tin                               146020
 BASE METALS ARBITRAGE                                    
 LME/SHFE COPPER               LMESHFCUc3           299.06
 LME/SHFE ALUMINIUM            LMESHFALc3         -2244.92
 LME/SHFE ZINC                 LMESHFZNc3           272.44
 LME/SHFE LEAD                 LMESHFPBc3           473.57
 LME/SHFE NICKEL               LMESHFNIc3            35.33
($1 = 6.4684 Chinese yuan)

 (Reporting by Manolo Serapio Jr.;
Editing by Joseph Radford and Vyas Mohan)
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