January 10, 2019 / 5:19 AM / 2 months ago

METALS-London copper picks up on weaker dollar; tin near 6-month top

 (Adds comment, updates prices)
    BEIJING, Jan 10 (Reuters) - London copper prices shrugged
off early losses to rise for a second session on Thursday, as a
weaker dollar enabled the metal to hold gains made from optimism
over the latest round of U.S.-China trade talks. 
    A weaker greenback makes dollar-denominated metals cheaper
for holders of other currencies and can support prices.
    However, prices in top consumer China failed to sustain the
momentum, with Shanghai copper slipping 0.1 percent. 
    Recent transactions in the refined and scrap copper markets
have been ordinary, consistent with the off-season, and
"fundamentals cannot support the copper price," Jinrui Futures
wrote in a note.
    Instead, prices for copper, an economic bellwether, will
move higher on improving macro sentiment and lower on weakening
sentiment, the Chinese brokerage added.  
        
    FUNDAMENTALS
    * LME COPPER: Three-month copper on the London Metal
Exchange was up 0.4 percent at $5,982.50 a tonne, as of
0440 GMT, after ending 0.9 percent higher on Wednesday. The
most-traded March copper contract on the Shanghai Futures
Exchange was down 0.1 percent at 47,510 yuan 
($6,996.54) a tonne by the end of the morning session. 
    * TRADE: China's commerce ministry said trade talks with the
United States this week were extensive and detailed, and
established a foundation for the resolution of each others'
concerns.
    * USD: The dollar weakened versus major peers due to
growing expectations the Federal Reserve will pause its rate
tightening cycle this year.
    * OTHER METALS: The LME complex was broadly higher, with
nickel up 0.6 percent and tin, which rose above
$20,000 for the first time since late June on Wednesday, adding
0.4 percent to $20,140 a tonne. Zinc fell 0.3 percent.
    * TIN: "The price rise is likely to have been triggered by
concerns about supply, for Indonesia – the world's largest tin
exporter – has been exporting considerably less tin since
October," Commerzbank said in a note. 
    * ALUMINA: Norwegian aluminium-maker Norsk Hydro
aims to resume full production at its Alunorte alumina plant in
Brazil within weeks or months, although the process still
remains uncertain.
    * For the top stories in metals and other news, click       
 or     
        
    MARKETS NEWS    
    * Asian shares took a breather after an extended rally, as
markets awaited more news on U.S.-China trade talks that have
raised hopes of a deal to avert an all-out trade war.
    
        
    DATA AHEAD (GMT)
    0745      France    Industrial Output         Nov
    1330      U.S.      Initial Jobless Claims    Weekly
    1330      U.S.      Continued Jobless Claims  weekly
    1500      U.S.      Wholesale Inventories     Nov        
        
    PRICES    
                                          0443 GMT
 Three month LME copper                       5976
 Most active ShFE copper                     47510
 Three month LME aluminium                  1858.5
 Most active ShFE aluminium                  13425
 Three month LME zinc                       2483.5
 Most active ShFE zinc                       20690
 Three month LME lead                       1975.5
 Most active ShFE lead                       17425
 Three month LME nickel                      11315
 Most active ShFE nickel                     91770
 Three month LME tin                         20140
 Most active ShFE tin                       146630
                                                  
                                                  
 LME/SHFE COPPER             LMESHFCUc3     426.15
 LME/SHFE ALUMINIUM          LMESHFALc3   -1195.55
 LME/SHFE ZINC               LMESHFZNc3     420.84
 LME/SHFE LEAD               LMESHFPBc3    1035.75
 LME/SHFE NICKEL             LMESHFNIc3    1682.74
 


($1 = 6.7905 Chinese yuan renminbi)

    
 (Reporting by Tom Daly, Editing by Sherry Jacob-Phillips and
Rashmi Aich)
  
 
 
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