November 18, 2019 / 7:45 AM / 24 days ago

METALS-Copper rises for second session as market eyes U.S.-China trade deal

 (Adds details on China's rate cut in paragraphs 6-7, updates
prices)
    By Naveen Thukral
    SINGAPORE, Nov 18 (Reuters) - London copper gained more
ground on Monday as hopes of a Sino-U.S. trade deal and China's
move to trim a closely watched lending rate kept investor
optimism afloat, underpinning prices.
    Three-month copper on the London Metal Exchange         was
up 0.3% at $5,865.50 a tonne, as of 0722 GMT, after a 0.6% gain
in the previous session. The most-traded copper contract on the
Shanghai Futures Exchange          added 0.2% at 46,980 yuan 
($6,717.09) a tonne.
        
    TRADE DEAL HOPES: Positive comments on trade from officials
in Washington and Beijing are expected to support the market.
    CONSTRUCTIVE TALKS: On Saturday, Chinese state media said
the two sides had "constructive talks" on trade in a high-level
phone call that included Vice Premier Liu He, U.S. trade
representative Robert Lighthizer and Treasury Secretary Steven
Mnuchin.             
    AGREEMENT SOON: White House economic adviser Larry Kudlow
said on Thursday the two nations were getting close to an
agreement, citing what he called very constructive talks with
Beijing about ending the 16-month spat.             
    INTEREST RATE: There was additional support for industrial
metals stemming from China's move to cut a key interest rate. 
            
    SHARES: Asian shares ticked higher on Monday after Beijing
surprised markets by trimming a key interest rate for the first
time since 2015, stirring speculation that further stimulus was
on the way for the world's second-largest economy.             
    ECONOMIC GROWTH: The tariff war has hampered global economic
activity and pushed metals prices sharply lower.
    INDUSTRIAL OUTPUT: China's industrial output grew
significantly slower than expected in October, underlining fears
of a sharp drop in demand in the world's largest consumer of
metals.             
    COPPER OUTPUT: China's October refined copper output rose
17.9% year-on-year to a record high of 868,000 tonnes.
Production of lead, zinc and alumina also increased.
            
    NICKEL STOCKS: Rising nickel inventories in Shanghai weighed
on prices. Shanghai nickel          slid almost 1.5%, while LME
nickel         was down 0.6%.             
    ALUMINIUM RESERVES: Japan's Marubeni Corp said aluminium
stocks held at three major Japanese ports at the end of October
fell 2.6% to 318,200 tonnes from the previous month.
AL-STK-JPPRT             
    LME ALUMINIUM: Headline aluminium inventories in
LME-registered warehouses rose by 44,200 tonnes to a little
under 1.1 million tonnes, the highest since June. MALSTX-TOTAL
    
    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
                
                
                
                
                   

 ($1 = 6.9941 Chinese yuan)

 (Reporting by Naveen Thukral, Editing by Sherry Jacob-Phillips,
Subhranshu Sahu and Shounak Dasgupta)
  
 
 
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