By Melanie Burton
MELBOURNE, March 22 London copper dropped with
other commodities on Wednesday, falling towards its lowest in a
fortnight as investors shunned risk on doubts over the economic
agenda of U.S. President Donald Trump.
Concerns that the U.S. would not push through corporate tax
cuts as promised before last year's election pulled down stocks
in Asia, with the negative sentiment spilling into metals, said
analyst Daniel Morgan of UBS in Sydney.
"People have also been looking at a resumption of copper
production at Freeport, and the possibility of a resolution of
the strike at Escondida soon," he said, adding that speculators
were now locking in profits.
"In the background, the physical trade is tightening day by
day. We are still bullish copper."
The global copper market is expected by some analysts to
fall into deficit this year for the first time in half a decade
after a series of mine disruptions crimped supply amid solid
* LONDON COPPER: Three-month copper on the London Metal
Exchange had slipped 0.3 percent to $5,759 a tonne by
0718 GMT, extending losses from the previous session. Earlier in
the day, prices hit their weakest since March 10 at $5,715 a
tonne, but found support at the 100-day moving average.
* SHANGHAI COPPER: Shanghai Futures Exchange copper
fell 2.1 percent to 46,660 yuan ($6,776) a tonne.
* CONSUMERS: The drop in prices encouraged buying by
consumers. One copper consumer told Reuters he had priced a lot
* CHINA SMELTERS: Copper stocks in China's Shenzhen are seen
as ample, while China smelters are still not rushing to buy spot
copper concentrate shipments, a smelter source said.
* ESCONDIDA: The striking union at BHP Billiton's
Escondida copper mine in Chile, the world's
largest, will meet with the company on Wednesday to resume
conversations, both parties said on Tuesday night.
* PERU METALS OUTPUT: Peru's copper production rose by 24.8
percent in January from the same month a year earlier, while
zinc output increased by 11.3 percent and gold slipped slightly,
official data showed on Tuesday.
* OTHER METALS: ShFE nickel and lead
dropped 2 percent or more, while ShfFE zinc closed 1.4
percent lower, pulled down by losses in steel
* SPREADS: LME cash prices traded at their steepest discount
to three-month prices since Jan. 18, data showed CMCU0-3,
which was the widest since June 2015, suggesting the refined
market is still in ample supply.
* MARKETS: Asian stocks posted their biggest drop in two
weeks on Wednesday as the growing doubts about Trump's economic
growth agenda prompted investors to dump risky assets.
0900 Euro zone Current account Jan
1300 U.S. Monthly home price index Jan
1400 U.S. Existing home sales Feb Wednesday, 22 March 2017
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Most active ShFE nickel
Three month LME tin
Most active ShFE tin
($1 = 6.8830 Chinese yuan)
(Reporting by Melanie Burton; Editing by Joseph Radford and