July 26, 2018 / 7:22 AM / in 5 months

UPDATE 1-METALS-London metals rise amid EU, U.S. trade hopes

 (adds Shanghai closing prices, updates London 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
note. 
   
    FUNDAMENTALS
    * LME copper: Three-month copper on the LME was up
0.4 percent at $6,316 a tonne by 0713 GMT, having dipped 0.1
percent in the previous session.
    * SHFE COPPER: The most-traded September copper contract on
the Shanghai Futures Exchange closed up 0.2 percent to
50,140 yuan ($7,395.28) a tonne.
    * DOLLAR: The dollar index fell by 0.2 percent to
94.143 following the Trump-Juncker announcement, making
dollar-denominated metals cheaper for holders of other
currencies.
    * 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 0.8 percent to 21,380 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       
 or         
    
    MARKETS NEWS    
    * 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.    
        
    PRICES
    
                                           0713 GMT
 Three month LME copper                        6313
 Most active ShFE copper                      50130
 Three month LME aluminium                     2066
 Most active ShFE aluminium                   14330
 Three month LME zinc                          2590
 Most active ShFE zinc                        21375
 Three month LME lead                        2165.5
 Most active ShFE lead                        18820
 Three month LME nickel                       13705
 Most active ShFE nickel                     111330
 Three month LME tin                          19845
 Most active ShFE tin                        145430
                                                   
                                                   
 LME/SHFE COPPER              LMESHFCUc3     532.42
 LME/SHFE ALUMINIUM           LMESHFALc3   -1844.57
                                          
 LME/SHFE ZINC                LMESHFZNc3     530.03
 LME/SHFE LEAD                LMESHFPBc3     858.93
 LME/SHFE NICKEL              LMESHFNIc3    2243.83
                                          
 
($1 = 6.7800 Chinese yuan)

    
 (Reporting by Tom Daly
Editing by Subhranshu Sahu and Sunil Nair)
  
 
 
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