November 21, 2019 / 7:41 AM / 7 months ago

METALS-Copper falls as U.S.-China trade deal remains elusive

 (Updates prices)
    MANILA, Nov 21 (Reuters) - Copper prices dropped on
Thursday, after touching a one-week high in the previous
session, as U.S. legislation supporting protests in Hong Kong
added to concerns over a possible further delay in a trade deal
between Washington and Beijing. 
    Benchmark copper         on the London Metal Exchange
slipped 0.5% to $5,845.50 a tonne by 0704 GMT. The most-active
copper contract on the Shanghai Futures Exchange         
virtually flat at 47,110 yuan ($6,691.95) a tonne, after falling
0.3% earlier in the session.  
    Completion of a "phase one" U.S.-China trade deal could
slide into next year, trade experts and people close to the
White House said, as Beijing presses for more extensive tariff
rollbacks while Washington counters with heightened demands of
its own.             
    Officials from Beijing had earlier suggested that Chinese
President Xi Jinping and U.S. President Donald Trump might sign
a deal by early-December.
    Possibly complicating the trade negotiations further, the
U.S. House of Representatives on Wednesday passed two bills to
back protesters in Hong Kong and send a warning to China about
human rights, which the Senate passed the day before, angering
    "The Congressional vote on the HK protesters doesn't help
get a trade deal done admittedly," said Robert Carnell, head of
research, Asia-Pacific, at ING.  
    COPPER WEEK: Miner Freeport-McMoRan Inc         and two
large Chinese copper smelters - Jiangxi Copper             and
Tongling Nonferrous Metals             - on Thursday agreed to a
23% cut in annual treatment and refining charges (TC/RCs) for
2020, pushing the industry benchmark to a nine-year low.
    GREEN ALUMINIUM: The London Metal Exchange is considering
creating a new market for "green" aluminium, using warehouse
ownership documents to identify low-carbon material instead of
spinning off a new futures contract.             
    COPPER SUPPLY: The global world refined copper market showed
a surplus of 29,000 tonnes in August, compared with 71,000
tonnes deficit in July, the International Copper Study Group
(ICSG) said in its latest monthly bulletin.             
    HUAWEI: The Trump administration on Wednesday gave Huawei
its second reprieve this week, allowing some suppliers to
restart sales to the Chinese telecoms giant after it was placed
on a trade black list over national security concerns six months
    ING's Carnell said allowing U.S. companies to do business
with Huawei, and reports that Trump was looking to exempt Apple
from tariffs "could be the answer from the U.S. to China's
request to roll tariffs back to the situation in May".
    "But we do not expect China will accept these as a
replacement for lifting tariffs, as these company level
exemptions will not be written as a clause in any trade
agreement," Carnell said. 
    ALUMINIUM OUTPUT: Global primary aluminium output rose to
5.392 million tonnes in October from revised 5.222 million
tonnes in September, data from the International Aluminium
Institute (IAI) showed.             
    LME PRICES: Aluminium         was up 0.2% and tin        
jumped 1.6%, while zinc         lost 0.1%, lead         slipped
0.3% and nickel         edged down 0.1%
    ShFE PRICES: Aluminium          closed up 0.8% while tin
         rose 2.2%, but zinc          fell 1.4%, nickel         
lost 0.9% and lead          slipped 0.8%. 
    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 = 7.0398 yuan)

 (Reporting by Enrico dela Cruz, Editing by Sherry
Jacob-Phillips and Shailesh Kuber)
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