July 3, 2019 / 4:41 AM / 13 days ago

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

 (Adds Shanghai closing prices, updates London prices)
    BEIJING, July 3 (Reuters) - Shanghai tin prices fell for a
sixth consecutive day 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. 
    After falling by 5% in Tuesday's daytime session, tin hit a
three-year low overnight before clawing back some ground but
still ended down almost another 4%. It has lost 8.6% this week
and around 9.9% so far in 2019.
    "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.
    The China branch of the International Tin Association said
in a note that tin supply was still tight. 
    China's refined tin production in the first five months of
2019 had fallen around 10% year-on-year, while ore imports from
neighbouring Myanmar were down 33% on a tin content basis, it
said. 
    
     
    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, but rallied to close down 3.8% at 132,500 yuan.
Three-month tin on the London Metal Exchange was up 0.5%
at $17,785 a tonne as of 0737 GMT, after shedding 6.4% on
Tuesday, when it touched its lowest since August 2016.
    * SHFE: Market open interest in Shanghai tin surged to the
highest since November at 52,042 lots on Tuesday, as short
positions increased, while the trading volume in Shanghai tin
had was around 162,500 lots on Wednesday, 11 times greater than
the full-day average for the past 30 days.
    * COPPER: Three-month LME copper slipped 0.2% to
$5,873 a tonne as the dollar strengthened, while ShFE
copper closed down 1% on 46,250 yuan.
    * 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.
    * For the top stories in metals and other news, click       
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    MARKETS NEWS    
    *  Asian shares fell 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                        0737 GMT
 Three month LME copper                        5873
 Most active ShFE copper                      46250
 Three month LME aluminium                   1775.5
 Most active ShFE aluminium                   13645
 Three month LME zinc                        2467.5
 Most active ShFE zinc                        19645
 Three month LME lead                        1894.5
 Most active ShFE lead                        16015
 Three month LME nickel                       12155
 Most active ShFE nickel                      97230
 Three month LME tin                          17785
 Most active ShFE tin                        132500
 ($1 = 6.8848 Chinese yuan renminbi)

    
 (Reporting by Tom Daly; editing by Richard Pullin & Uttaresh.V)
  
 
 
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