December 12, 2017 / 11:53 AM / 2 years ago

METALS-Zinc up after Glencore holds 2018 output forecast steady

    * LME/ShFE arb:

 (Adds closing prices)
    By Maytaal Angel
    LONDON, Dec 12 (Reuters) - Zinc prices rose on Tuesday after
miner and trader Glencore          held its output forecast
steady for next year, disappointing investors who had largely
bet it would restart more capacity.
    Glencore told an investors presentation it would restart its
Lady Loretta mine in the first half of 2018, but added that it
expects zinc output to fall slightly to about 1.09 million
tonnes from 1.1 million tonnes this year. 
    In 2019, Glencore sees its zinc output creeping up to 1.16
million tonnes.              
    "Based on their guidance numbers it does remain fairly
constructive for zinc. The market was expecting more of an
immediate supply increase," said ING commodities strategist
Warren Patterson.
    However, he added that ING expects overall global zinc
supply to increase next year, with the addition of capacity
coming online in Australia and South Africa.
    * ZINC: London Metal Exchange zinc         ended up 1
percent at $3,157 a tonne.
    * LEAD: Seasonally strong demand from battery makers, tight
supplies caused by mine shutdowns and dwindling LME inventories
are expected to sustain lead prices, which recently hit six-year
    Lead        , which is mined alongside zinc, closed up 1.2
percent at $2,517.
    * DOLLAR: The U.S. currency rose to three-week highs against
a basket of currencies as the Federal Reserve begins a two-day
policy meeting widely expected to result in a hike in interest
    A strong U.S. currency makes dollar-priced priced metals
costlier for non-U.S. investors.
    * GLENCORE COPPER: Glencore said its expects to produce
150,000 tonnes of copper next year and 300,000 tonnes in 2019 at
its Katanga mine in the Democratic Republic of Congo. The mine
has restarted after a suspension dating back to 2015.
    * CHINA ECONOMY: Vehicle and loans data from China, which
accounts for about half of global consumption of industrial
metals, on Monday pointed to improved consumer confidence.
    "There is as yet little evidence of the government’s
deleveraging attempts given that lending has also risen sharply
since the beginning of the year," Commerzbank said in a note.
    * CHINA ALUMINIUM: "Barring a stronger enforcement of the
(aluminium) capacity cuts in China, we believe the aluminium
market should remain oversupplied. Hence, we stick to our
cautious view while reiterating our three and twelve-month price
targets at $1,950 and $1,850 per tonne," Julius Baer said in a
    * METALS PRICES: Aluminium         closed down 0.3 percent
at $2,016 a tonne, copper         ended down 0.1 percent at
$6,663, nickel         closed down 1.6 percent at $11,065 and
tin         closed down 1.2 percent at $19,165. 

 (Addititonal reporting by James Regan; Editing by Jane Merriman
and David Goodman)
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