July 26, 2018 / 4:32 AM / a year ago

METALS-London metals rise amid EU, U.S. trade hopes

 (Adds analyst comment, updates prices)
    BEIJING, July 26 (Reuters) - London base metal prices rose
across the board on Thursday, after U.S. President Donald Trump
and European Union President Jean-Claude Juncker reached an
agreement that investors hope will avert a trade war, and the
dollar weakened.
    Trump and Juncker said after meeting in Washington on
Wednesday that they would seek to "resolve" U.S. tariffs on
steel and aluminium and Europe's retaliatory duties. That marked
a step back from Trump's signature import protections for
American metal producers.
    He also agreed to refrain from imposing car tariffs while
the two sides launch negotiations to cut other trade barriers,
easing the threat of a transatlantic trade war that has weighed
on metals prices in recent weeks.   
    "The outcome of talks between Trump and Juncker could set
the tone for commodity markets in coming days," ANZ wrote in a
    * LME copper: Three-month copper on the LME was up
0.7 percent at $6,335.50 a tonne by 0404 GMT, having dipped 0.1
percent in the previous session.
    * SHFE COPPER: The most-traded September copper contract on
the Shanghai Futures Exchange edged up 0.1 percent to
50,060 yuan ($7,397.23) a tonne by the mid-session interval.
     * DOLLAR: The dollar index fell by 0.2 percent to
94.152 following the Trump-Juncker announcement, making
dollar-denominated metals cheaper for holders of other
    * FREEPORT: Freeport-McMoRan Inc said a revised
development plan at Grasberg in Indonesia would reduce copper
and gold production during a transition to underground mining in
2019 and 2020.
    * COPPER: "Even if Grasberg's production meets new guidance,
2019 and 2020 are now both expected to be weak years
operationally, with free cash flow averaging about $1.7 billion
per year," Jefferies said in a note.    
    * OTHER METALS: London aluminium, lead and
nickel climbed more than 1 percent each in early Asian
trade before easing back. Shanghai zinc was the worst
performer, falling 1.4 percent to 21,355 yuan a tonne.
    * ZINC: "From the macro side, risks to Chinese zinc demand
are increasing as the trade war between the country and the
United States escalates, especially as China continues to face
mounting internal risks from excessive debt," GFMS says.
    * For the top stories in metals and other news, click       
    * Asian stocks inched higher on Thursday as the United
States and Europe agreed to negotiations to ease barriers on
trade, but ongoing concerns about the outlook for global growth
weighed on investor sentiment.    
 BASE METALS PRICES                        0405 GMT
 Three month LME copper                      6335.5
 Most active ShFE copper                      50050
 Three month LME aluminium                     2077
 Most active ShFE aluminium                   14330
 Three month LME zinc                        2587.5
 Most active ShFE zinc                        21255
 Three month LME lead                          2166
 Most active ShFE lead                        18775
 Three month LME nickel                       13700
 Most active ShFE nickel                     111050
 Three month LME tin                          19775
 Most active ShFE tin                        145430
 BASE METALS ARBITRAGE                             
 LME/SHFE COPPER              LMESHFCUc3     405.91
 LME/SHFE ALUMINIUM           LMESHFALc3   -1911.84
 LME/SHFE ZINC                LMESHFZNc3     461.65
 LME/SHFE LEAD                LMESHFPBc3     858.17
 LME/SHFE NICKEL              LMESHFNIc3     2104.3
 ($1 = 6.7674 Chinese yuan)

 (Reporting by Tom Daly
Editing by Joseph Radford and Subhranshu Sahu)
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