July 19, 2018 / 4:58 AM / a month ago

METALS-LME zinc falls sharply as sell-off resumes after Shanghai surge

 (Changes comment; updates prices)
    BEIJING, July 19 (Reuters) - Three-month zinc on the London
Metal Exchange (LME) gave up early gains to trade sharply lower
on Thursday as another broad sell-off in industrial metals took
hold.
    Shanghai zinc had earlier jumped by the daily limit of 6
percent to a one-week top following a report that China plans to
boost liquidity in the banking sector, and was underpinned by
falling inventories and a weaker yuan.
    The LME sell-off that followed came as a China foreign
ministry spokeswoman described as "shocking" comments from U.S.
economic adviser Larry Kudlow that Chinese President Xi Jinping
was "holding up" a deal to resolve a trade row between the two
countries.
    Matt France, head of Asia institutional metal sales at
brokerage Marex Spectron, said in a note that dips in metals
prices "continue to offer up value on an intra-day basis" but
"the bearish trend remains intact."
 
    FUNDAMENTALS
    * LME ZINC: Three-month zinc on the LME rose as much
as 2.1 percent earlier in the session, but was down 3.6 percent
at $2,507.50 a tonne, as of 0739 GMT. In the previous session,
the metal gained 3.5 percent, its biggest daily jump in almost a
year.
    * SHANGHAI ZINC: The most-traded September zinc contract on
the ShFE touched its highest since July 10 before
closing up 3.5 percent at 21,125 yuan ($3,126.99) a tonne for a
second straight daily gain.
    * CHINA: The People's Bank of China plans to introduce
incentives that will boost the liquidity of commercial banks,
helping them to expand lending, according to a source with
direct knowledge of the matter.    
    * CHINA: China's zinc output fell 5 percent year-on-year to
475,000 tonnes in June, the National Bureau of Statistics said
on Wednesday. 
    * OTHER METALS: Shanghai base metals closed higher across
the board, but LME copper was trading down 2.3 percent,
nickel down 2.6 percent and lead down 2.5
percent in a broad sell-off.
    * COPPER: Three senior executives at Jiangxi Copper Co
, one of China's biggest copper producers,
have left their roles, the company said in a stock exchange
filing on Wednesday, in a major managerial shake-up at the
state-run firm.
    * For the top stories in metals and other news, click       
 or     
        
    MARKETS NEWS    
    * Asian shares on Thursday struggled to hold earlier gains
made after upbeat Wall Street earnings, as trade war jitters
rattled China's stock and currency markets, with the yuan
hitting fresh one-year lows.    
        
    
    PRICES
 BASE METALS PRICES                        0745 GMT
 Three month LME copper                      6000.5
 Most active ShFE copper                      48660
 Three month LME aluminium                     2012
 Most active ShFE aluminium                   14065
 Three month LME zinc                        2511.5
 Most active ShFE zinc                        21120
 Three month LME lead                          2114
 Most active ShFE lead                        18935
 Three month LME nickel                       13245
 Most active ShFE nickel                     109050
 Three month LME tin                          19285
 Most active ShFE tin                        144420
                                                   
 BASE METALS ARBITRAGE                             
 LME/SHFE COPPER              LMESHFCUc3     1295.2
 LME/SHFE ALUMINIUM           LMESHFALc3   -1762.87
 LME/SHFE ZINC                LMESHFZNc3     785.72
 LME/SHFE LEAD                LMESHFPBc3      640.7
 LME/SHFE NICKEL              LMESHFNIc3     2979.6
 
    ($1 = 6.7557 Chinese yuan)

    
 (Reporting by Tom Daly; Editing by Subhranshu Sahu and Sherry
Jacob-Phillips)
  
 
 
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below