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METALS-London copper, zinc climb on China economy prospects
September 19, 2017 / 2:23 AM / 3 months ago

METALS-London copper, zinc climb on China economy prospects

MELBOURNE, Sept 19 (Reuters) - London copper and zinc climbed on Tuesday on signs that a cooling property market in top consumer China was not derailing economic growth in the world’s top metals consumer.

FUNDAMENTALS

* LME COPPER: Three-month copper on the London Metal Exchange was trading up 0.2 percent at $6,539 a tonne by 0142 GMT, extending a small advance from the session before. LME copper has been consolidating around $6,450-$6,550 a tonne since falling to a four-week trough of $6,453 a tonne last week.

* SHFE COPPER: Shanghai Futures Exchange copper was up 1 percent at 50,830 yuan ($7,734) a tonne.

* CHINA PROPERTY: China’s new home prices rose in August at the slowest pace in seven months and fell or levelled off in more cities as government cooling measures dampened speculation, though there were no signs of a sharper correction that could damage the economy.

* LME ZINC: London zinc extended 2.2-percent gains for the day before by another 0.7 percent, at one point touching its highest in more than a week at $3,123.50 a tonne.

* SHFE ZINC: Shanghai zinc was also up strongly, by 3.2 percent at 25,635 yuan a tonne, largely tracking gains in London.

* CHINA ZINC, NICKEL: Zinc and nickel prices have rallied on expectations that steel makers may be able to pay more for their raw materials, given industry consolidation that has curbed overcapacity and pushed up profits. Zinc is used to galvanise or rust-proof steel. Output will also be constrained over China’s winter after Beijing mandated a slew of curbs to industry as it looks to clear smoggy skies.

* ZINC SUPPLY: Zinc prices have also heated up given expectations that tighter mine supply will impede production of refined metal. China’s August zinc production fell 4.6 percent.

But several large mines have brought forward or raised production, including MMG Ltd’s Dugald River operations in Australia. Canada’s Teck Resources Ltd raised its Red Dog zinc production guidance for 2017 to a range of 525,000 to 550,000 tonnes, up from 475,000 to 500,000 tonnes.

* PERU ZINC: Peru raised its zinc production by 7 percent in July to 114,136 tonnes. Peru is also the biggest supplier of zinc ore to China, with exports up by nearly half on last year at just shy of 400,000 tonnes to July.

* For the top stories in metals and other news, click or

MARKETS NEWS

* Asian shares wavered on Tuesday, bolstered by record highs on Wall Street but hobbled by uncertainty as traders waited on a Federal Reserve meeting for clues on U.S. monetary policy.

DATA/EVENTS

0800 Euro Zone Current account data Jul

0900 Germany ZEW economic sentiment index Sep

1230 U.S. Current account data Q2

1230 U.S. Import and export prices Aug

1230 U.S. Housing starts Aug

PRICES

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

ARBS ($1 = 6.5725 Chinese yuan renminbi)

Reporting by Melanie Burton; Editing by Joseph Radford

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