September 19, 2018 / 1:49 AM / 3 months ago

METALS-Shanghai copper jumps to 1-month high after China's measured tariff response

    BEIJING, Sept 19 (Reuters) - Shanghai copper prices rose
sharply in early trade on Wednesday, tracking a jump in London
in the previous session and hitting a one-month high as
investors shrugged off an escalation of the U.S.-China trade
row.
    China responded to the latest U.S. tariffs on $200 billion
of Chinese goods with tariffs on about $60 billion worth of U.S.
goods, as previously planned, but has reduced the levy it will
collect on the products.
        
    FUNDAMENTALS
    * SHFE COPPER; The most-traded copper contract on the
Shanghai Futures Exchange rose as much as 2.8 percent
overnight, its biggest intraday jump since April 19, to 49,730
yuan  ($7,250.22) a tonne, its highest since Aug. 14. It was
trading up 2.1 percent as of 0120 GMT.
    * LME COPPER: Three-month copper on the London Metal
Exchange was flat at $6,085 a tonne, after closing up
2.4 percent in the previous session.     
    * TRADE: China is not afraid of "extreme measures" the
United States is taking in the trade war and will use it as an
opportunity to replace imports, promote localisation and
accelerate the development of high-tech products, state media
said.
    * COPPER PREMIUM: Chinese copper import premiums
SMM-CUYP-CN have risen to $107.50 a tonne, the highest since
October 2015, indicating strong demand for physical metal.
    * COPPER: A company owned by Russian billionaire Alisher
Usmanov is in talks to raise $1.25 billion from Russian banks by
the start of 2019 to build a massive mining and metallurgical
plant at Russia's biggest untapped copper deposit, its chairman
said.
    * OTHER METALS: Zinc was the other big gainer in
Shanghai, rising as much as 2.5 percent to its highest since
Sept 3, while LME zinc added 0.8 percent to $2,367.50 a tonne.
    * RUSAL: Rusal's foil-rolling plant Armenal has
started cutting production due to U.S. sanctions on the Russian
aluminium giant, a source at the plant and a source close to
Rusal said.
    * For the top stories in metals and other news, click       
 or     
        
    MARKETS NEWS    
    * Asian stocks rose and U.S. Treasury yields hovered near
four-month highs on Wednesday, as investors looked past the
latest escalation in the U.S.-China trade conflict, seen by some
market participants as less severe than expected.   
        
    DATA AHEAD (GMT)
    0800  Euro zone Current account Jul
    0830  UK        Consumer prices Aug
    1230  U.S.      Housing starts Aug
    1230  U.S.      Building permits Aug
               
    PRICES    
 BASE METALS PRICES                       0125 GMT
 Three month LME copper                       6087
 Most active ShFE copper                     49390
 Three month LME aluminium                    2032
 Most active ShFE aluminium                  14465
 Three month LME zinc                       2367.5
 Most active ShFE zinc                       21035
 Three month LME lead                         2066
 Most active ShFE lead                       18690
 Three month LME nickel                      12315
 Most active ShFE nickel                    101580
 Three month LME tin                         18950
 Most active ShFE tin                       143630
                                                  
 BASE METALS ARBITRAGE                            
 LME/SHFE COPPER             LMESHFCUc3     755.14
 LME/SHFE ALUMINIUM          LMESHFALc3   -1679.35
 LME/SHFE ZINC               LMESHFZNc3    1364.81
 LME/SHFE LEAD               LMESHFPBc3     934.28
 LME/SHFE NICKEL             LMESHFNIc3    2902.27
    


($1 = 6.8591 Chinese yuan renminbi)

    
 (Reporting by Tom Daly; editing by Richard Pullin)
  
 
 
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