April 4, 2018 / 2:17 AM / 22 days ago

METALS-Shanghai metals prices fall as U.S.-China trade row escalates

    BEIJING, April 4 (Reuters) - Shanghai base metal prices
mostly fell on Wednesday after the United States announced fresh
tariffs on 1,300 Chinese products, including some metal
products, escalating a trade row with China, which has vowed to
respond.
        
    FUNDAMENTALS
    * SHFE COPPER: The most-traded May copper contract on the
Shanghai Futures Exchange, which has risen for five
trading days in a row, was flat at 50,410 yuan ($8,019.28) a
tonne by 0154 GMT.
    * LME COPPER: Three-month copper on the London Metal
Exchange was up 0.2 percent at $6,810.50 a tonne,
extending a 1.2 percent gain in the previous session.
    * OTHER METALS: The four other key base metals in Shanghai
were all in negative territory amid trade war fears, led by zinc
, which was down 1 percent at 24,660 yuan a tonne, while
aluminium and lead were both down 0.5 percent.
  
    * UNITED STATES: The Trump administration on Tuesday raised
the stakes in a growing trade showdown with China, announcing 25
percent tariffs on some 1,300 industrial technology, transport
and medical products to try to force changes in Beijing's
intellectual property practices.
    * TRADE: China's commerce ministry said on Wednesday it
"strongly condemns and firmly opposes" the proposed U.S. tariffs
following the Section 301 probe and will take counter measures,
according to the official Xinhua news agency.
    * CHINA: China's services sector growth eased to a
four-month low in March as new business and employment grew at a
slower rate, a private business survey showed, pointing to
cooling demand in a sector Beijing is counting on to maintain
economic growth.
    * CHILE: Caserones copper mine in Chile said on Tuesday that
it would temporarily shut down its copper concentrator in order
to replace a leaking pipe.
    * LITHIUM: Representatives of Chinese lithium giant Tianqi
met with Chile's top anti-trust prosecutor less than a month
after Chilean authorities moved to block the miner from buying a
coveted stake in Chile's SQM, Chile's lobbyist transparency
website showed on Tuesday.
    * ALCOA: Aluminium producer Alcoa Corp said on
Tuesday it had signed contracts to transfer Canadian pension
obligations and assets worth $555 million to three insurers, in
a move to strengthen its balance sheet.
    
    MARKETS NEWS    
    * Asian shares were trying to bounce on Wednesday as
investors underwent another of the mercurial mood swings that
have plagued markets recently, and one could prove just as
fleeting given simmering fears of a trade war.    
        
    DATA AHEAD (GMT)
    0900  Euro zone    Unemployment rate Feb
    1215  U.S.    ADP national employment Mar
    1400  U.S.     Factory orders Feb
    1400  U.S.     ISM non-manufacturing PMI Mar
        
    PRICES    
    
 BASE METALS PRICES                 0206 GMT           
 Three month LME copper                            6810
 Most active ShFE copper                          50390
 Three month LME aluminium                         1996
 Most active ShFE                                 13980
 aluminium                                    
 Three month LME zinc                              3255
 Most active ShFE zinc                            24645
 Three month LME lead                            2388.5
 Most active ShFE lead                            18675
 Three month LME nickel                           13495
 Most active ShFE nickel                         100270
 Three month LME tin                              21265
 Most active ShFE tin                            145050
                                                       
 BASE METALS ARBITRAGE                                 
 LME/SHFE COPPER            LMESHFCUc3           611.05
 LME/SHFE ALUMINIUM         LMESHFALc3          -564.34
 LME/SHFE ZINC              LMESHFZNc3           279.29
 LME/SHFE LEAD              LMESHFPBc3           211.03
 LME/SHFE NICKEL            LMESHFNIc3           -32.39
 

($1 = 6.2861 Chinese yuan)

    
 (Reporting by Tom Daly; Editing by Biju Dwarakanath)
  
 
 
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