July 3, 2019 / 2:15 AM / 3 months ago

METALS-Shanghai tin plumbs 3-yr lows as short selling takes hold

    BEIJING, July 3 (Reuters) - Shanghai tin prices plunged and
were heading for their sixth consecutive daily drop on Wednesday
as investors took out more short positions on the metal used in
tin cans and lead-acid batteries, even as analysts said
fundamentals had not changed. 
    Tin hit a three-year low in Shanghai overnight and is down
almost 10% so far in 2019. 
     
    FUNDAMENTALS
    * TIN: The most traded September tin contract on
the Shanghai Futures Exchange fell as much as 7.2% overnight to
127,780 yuan ($18,559.73) a tonne, its lowest since June 30,
2016, and was trading down 4.4% at 131,700 yuan as of 0200 GMT.
Three-month tin on the London Metal Exchange steadied
after shedding 6.4% on Tuesday. It was trading up 0.5% at
$17,790 a tonne on Wednesday.
    * SHFE: Market open interest in Shanghai tin surged to the
highest since November at 52,042 lots, as short positions
increased, while the trading volume in Shanghai tin had
surpassed 100,000 lots by 0130 GMT, versus a 30-day average of
14,750 for an entire day's trade.
    * CITIC: "The overall pattern of weak supply and demand
remains unchanged," Citic Futures said in a note, adding that
there was no obvious reason for the deterioration and that the
price movements were fund-driven. Chinese tin smelters are all
losing money at these price levels, it added.
    * COPPER: Three-month copper on the London Metal Exchange
 edged down 0.1% to $5,884 a tonne, while ShFE copper
slid 0.9% to 46,320 yuan a tonne. 
    * ALUMINIUM: Aluminium producer Alcoa Corp said it
expects to incur a charge of between $40 million and $50 million
in the second half of 2019, related to restarting operations at
its Canadian smelter in Becancour, Quebec.
    * EXCHANGE: Qianhai Mercantile Exchange, a mainland China
physical commodities bourse owned by Hong Kong Exchanges and
Clearing Ltd, has started spot trading of aluminium ingots and
billets.
    * ECUADOR: Ecuador on Tuesday mobilised hundreds of soldiers
and police to a mountainous area to confront illegal mining and
organised crime that have fuelled violence in the north of the
country, the interior minister said.
    * For the top stories in metals and other news, click       
 or     
        
    MARKETS NEWS    
    *  Asian shares were subdued as initial enthusiasm over the
latest U.S.-China trade truce was overtaken by fresh concerns
over Washington's threat of tariffs on additional European
goods.            
    PRICES    
 BASE METALS PRICES                       0155 GMT
 Three month LME copper                       5887
 Most active ShFE copper                     46330
 Three month LME aluminium                    1780
 Most active ShFE aluminium                  13635
 Three month LME zinc                         2471
 Most active ShFE zinc                       19725
 Three month LME lead                         1887
 Most active ShFE lead                       16055
 Three month LME nickel                      12140
 Most active ShFE nickel                     97550
 Three month LME tin                         17810
 Most active ShFE tin                       132300
 
($1 = 6.8848 Chinese yuan renminbi)

    
 (Reporting by Tom Daly; editing by Richard Pullin)
  
 
 
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