September 24, 2019 / 5:39 AM / 20 days ago

METALS-Copper ticks higher on trade talk optimism; other metals fall

 (Adds Shanghai closing prices, updates London prices)
    BEIJING, Sept 24 (Reuters) - London copper prices edged
higher on Tuesday after U.S. Treasury Secretary Steven Mnuchin
said he would meet Chinese Vice Premier Liu He for trade talks
in two weeks.
    Copper, considered a bellwether for economic health, has in
recent months taken its directional cues from developments in
the U.S.-China trade row, which has dampened the demand outlook
for industrial metals.
    The rest of the London base complex was lower as metals
remained under pressure following weak economic data from
Germany, Europe's biggest economy, Malcolm Freeman, director of
Kingdom Futures, said in a note. 
    German private-sector activity shrank for the first time in
6-1/2 years in September as a manufacturing recession deepened
unexpectedly.
    "While the longer-term view into next year for metals may be
positive, it looks likely that there will be further downside
pressure on prices in the short term," Freeman wrote. 
    
    FUNDAMENTALS
    * COPPER: Three-month copper on the London Metal Exchange
 was up 0.3% at $5,794 a tonne by 0723 GMT, after closing
down 0.3% on Monday, when it hit a 2-1/2-week low. The
most-traded November copper contract on the Shanghai Futures
Exchange closed up 0.2% at 47,120 yuan ($6,633.44) a
tonne.
    * DEFICIT: The global refined copper market showed a
21,000-tonne deficit in June, compared with a 70,000-tonne
deficit in May, the International Copper Study Group said.

    * FIRST QUANTUM: Canada's First Quantum Minerals Ltd
confirmed it was in talks with China's Jiangxi Copper
 for a potential sale of a minority interest in its
Zambian copper assets.
    * CODELCO: Chile's state copper miner Codelco issued $2
billion of bonds on Monday as it seeks to smooth financing of a
major overhaul of its ageing mines.
    * NICKEL: The metal used to make stainless steel
slipped as much as 2.1% in London despite more than 19,000
tonnes of cancelled LME warrants - metal earmarked for delivery
- on Monday. "It is also worth noting that the tightness in the
nickel spread ... eased from $200 to $130 on the cash to three,"
Freeman said CMNI0-3.
    * STAINLESS: The ShFE will launch trading in stainless steel
futures on Wednesday.
    * OTHER METALS: Zinc was down 1%, aluminium
slipped 0.1%, tin shed 0.2% and lead lost 0.4%. 
   
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    MARKETS NEWS    
    * Global shares edged up on Tuesday after U.S. Treasury
Secretary Mnuchin confirmed U.S.-China trade talks would resume
next month, but concerns about slowing global growth reduced the
overall appetite for riskier assets.    
        
    PRICES
 BASE METALS PRICES                        0726 GMT
 Three month LME copper                        5799
 Most active ShFE copper                      47120
 Three month LME aluminium                   1783.5
 Most active ShFE aluminium                   14155
 Three month LME zinc                          2308
 Most active ShFE zinc                        18795
 Three month LME lead                        2077.5
 Most active ShFE lead                        16745
 Three month LME nickel                       17465
 Most active ShFE nickel                     138590
 Three month LME tin                          16495
 Most active ShFE tin                        136550
                                                   
 BASE METALS ARBITRAGE                             
 LME/SHFE COPPER              LMESHFCUc3     571.85
 LME/SHFE ALUMINIUM           LMESHFALc3    -240.05
                                          
 LME/SHFE ZINC                LMESHFZNc3      11.92
 LME/SHFE LEAD                LMESHFPBc3    -531.43
 LME/SHFE NICKEL              LMESHFNIc3   -4651.25
                                          
 ($1 = 7.1034 Chinese yuan renminbi)

 (Reporting by Tom Daly; Editing by Subhranshu Sahu and Dale
Hudson)
  
 
 
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