December 7, 2018 / 6:02 PM / 4 days ago

METALS-Copper bounces from 3-week low as dollar drops

    * Dollar heads for biggest weekly drop in two months
    * U.S. payrolls eyed amid fears growth is slowing
    * Zinc cash to three spread near record highs

 (Adds closing prices/details)
    By Maytaal Angel
    LONDON, Dec 7 (Reuters) - Copper climbed more than 1 percent
on Friday as the dollar looked set to record its biggest weekly
drop in two months, tempting buyers back to the metal after the
previous day's steep slide.
    Three-month copper on the London Metal Exchange        
ended up 1.2 percent at $6,145 a tonne. The contract had dropped
1.7 percent on Thursday after the arrest in Canada of a top
executive at Chinese telecoms giant Huawei dampened hopes for a
resolution of the U.S.-China trade conflict.             
    The dollar weakened after data showed U.S. employers hired
fewer workers than forecast in November, backing the view that
U.S. growth is moderating and the Federal Reserve may stop
raising rates sooner than previously thought.       
    A weaker dollar makes dollar-priced metals cheaper for
non-U.S. investors. 
    Wall Street fell amid a drop in technology stocks and White
House comments that U.S. officials would raise tariffs if
Washington and China could not come to an agreement during the
current 90-day truce.     
    "Metals at the moment (are) all macro driven. The world is
in a very vulnerable situation but (while) global growth looks
like it's peaked (it's) not slowing measurably, so we're range
trading. Copper still has very low exchange inventories," said
Alastair Munro, metals analyst at Marex Spectron.

    * COPPER SPREADS: The premium for cash copper over the three
month price CMCU0-3 was at $9.50 a tonne, down from a peak of
$44 in late November, indicating increased nearby supply. LME
copper stocks are at their lowest in a decade, however.
MCU-STOCKS
    * JAPAN COPPER: Japan's Pan Pacific Copper expects copper
prices to rise toward $7,000 a tonne in 2019, backed by firm
global demand and tighter supply.             
    * ZINC SPREADS: The premium for cash zinc over the three-
month price CMZN0-3 at $114 a tonne, was near record highs,
indicating very tight nearby supply. LME zinc stocks have halved
since mid-August and are near a 10-year low. MZNSTX-TOTAL
    * ZINC POSITIONS: Traders are keeping a close eye on
positions holding large amounts of LME zinc warrants and cash
contracts, which are causing jitters about nearby availability.
0#LME-WHC
    * INDONESIA TIN: Indonesia's refined tin exports in November
dropped 56 percent from a year earlier.             
    * VALE NICKEL: Brazil's Vale            is betting on the
electric vehicle revolution to turn its nickel division around.
             
    * METALS PRICES: LME zinc         ended down 0.2 percent at
$2,587 a tonne, having hit its highest since late October, while
aluminium         closed up 1 percent at $1,955. Lead        
ended up 0.6 percent at $1,995, tin         ended up 0.4 percent
at $19,000, while nickel         ended up 0.6 percent at
$10,910. 
    
    
    

    
 (Editing by Gareth Jones; Editing by Kirsten Donovan and Elaine
Hardcastle)
  
 
 
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