November 16, 2018 / 2:26 AM / a month ago

METALS-Shanghai zinc rallies amid falling stockpiles, China-U.S. trade hopes

    SINGAPORE, Nov 16 (Reuters) - Shanghai zinc jumped more than
3 percent to the highest in more than two weeks on Friday amid
sliding stockpiles in London and signs that China may be taking
steps to de-escalate its trade dispute with the United States.
    China has delivered a written response to U.S. demands for
wide-ranging trade reforms ahead of expected talks between U.S.
President Donald Trump and Chinese President Xi Jinping on the
sidelines of a G20 summit in Argentina later this month.
            
    "Trade tension has been weighing on the base metals sector
for the past six months, so this latest move represents some
hope that there is light at the end of the tunnel," ANZ analysts
said in a note.
    The most-traded January zinc contract on the Shanghai
Futures Exchange          rose as much as 3.3 percent to 21,645
yuan a tonne, its loftiest since Oct. 30. It was up 3 percent at
21,580 yuan by 0155 GMT.
    The gains followed a 3-percent overnight rally in zinc on
the London Metal Exchange        . LME zinc was last trading at
$2,593 a tonne, up 0.7 percent.
    
    * LME zinc stocks MZNSTX-TOTAL fell to a decade-low of
125,400 tonnes, data showed, while on-warrant or available
stocks hit their lowest since February.
    * The global zinc market deficit narrowed to 54,700 tonnes
in September from a revised deficit of 81,800 tonnes in August,
data from the International Lead and Zinc Study Group showed on
Wednesday.             
    * Chinese copper smelter Jiangxi Copper             and
miner Antofagasta          have agreed 2019 copper treatment and
refining charges (TC/RCs) at $80.80 a tonne and 8.08 cents a
pound, three sources familiar with the matter said.             
    The refining charges agreed between Jiangxi and Antofagasta,
the first major deal for 2019 which typically sets the benchmark
for the sector, are down from the 2018 benchmark of $82.25 a
tonne and 8.225 cents a pound. 
    * "The concluded annual TC/RC for 2019 reflects a much
better supply and demand fundamentals globally. We expect copper
prices to be well supported by the recent developments and
outlook," Argonaut Securities said in a note.
    * Chile's state copper agency Cochilco lowered its average
copper price prediction for this year by $0.03 to $2.97 per
pound on Thursday in its second negative projection in six
months.             
    * Copper rose 0.2 percent to $6,194.50 a tonne in London
        and climbed 0.8 percent to 49,560 yuan in Shanghai
        .
    * For the top stories in metals and other news, click       
          or             
        
    MARKETS NEWS    
    * The British pound suffered its biggest one-day loss
against the euro since October 2016 after a bout of political
turmoil fanned fears the country could crash out of the European
Union without a divorce deal. Hopes for a thaw in Sino-U.S.
trade relations boosted Asian equities.                
        
    DATA/EVENT AHEAD (GMT)
    0700  Germany     Wholesale price index            Oct
    0900  Italy       Industrial orders                Sept 
    0830  European Central Bank President Draghi speaks
    1415  U.S.        Industrial production            Oct    
        
    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
                
                
                
                
                

    
 (Reporting by Mai Nguyen, Editing by Manolo Serapio Jr. and
Sherry Jacob-Phillips)
  
 
 
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