March 27, 2017 / 11:09 AM / 6 months ago

METALS-Copper hits two-week low after Trump setback on healthcare reform

* Copper down 0.7 pct at $5,760 after touching $5,671

* Weaker dollar could yet provide price support

* Nickel falls as supply worries recede (Adds closing prices)

By Pratima Desai

LONDON, March 27 (Reuters) - Copper slid to a two-week low on Monday as funds cut bets on higher prices after U.S. President Donald Trump’s failure to push through healthcare reform fuelled concern about his ability to implement his economic policies.

Benchmark copper on the London Metal Exchange ended 0.7 percent down at $5,760 a tonne, having touched $5,671, its lowest since March 9.

“Trump’s election was seen as good for markets, but he is now being seen as potentially less effective than people were thinking,” said SP Angel analyst John Meyer.

“His failure on Obamacare has created uncertainty about whether he can push his policies through Congress.”

* U.S. HEALTHCARE: Trump suffered a political setback on Friday in a Congress controlled by his own party when Republican leaders pulled legislation to overhaul the U.S. healthcare system.

* DOLLAR: A weaker dollar, at four-month lows against a basket of currencies, could yet support prices because it makes dollar-denominated metals cheaper for holders of other currencies.

* TECHNICALS: A closing copper price below the 100-day moving average around $5,749 could prompt further losses.

* ESCONDIDA: The union at Chile’s Escondida copper mine has ended its 43-day strike by invoking a legal provision to extend workers’ old contract by 18 months, leaving owner BHP Billiton in a weaker position for future negotiations. * ZINC: The market focus is on New Orleans, warehouses’ on-warrant stocks have dropped to 183,800 tonnes after a further 21,300 tonnes of cancellations or metal earmarked for delivery. MZNSTX-TOTAL On-warrant zinc stocks -- metal available to the market -- have fallen 42 percent this year to the lowest levels since November 2008.

* NICKEL: Receding worries about supply shortages saw nickel close 1 percent down at $9,770 a tonne, having touched $9,655, its lowest since Jan. 30.

* OTHER METALS: Aluminium ended 0.5 percent lower at $1,930 a tonne, zinc ceded 2.5 percent to $2,760 and lead lost 2.4 percent to $2,297. Tin was untraded at the close but bid down 1.8 percent to $19,500.

* LME/SHFE ARBITRAGE: LME copper trading was at a 313 yuan premium to prices on the Shanghai Futures Exchange at 1701 GMT, aluminium was at a 1,760 yuan discount, zinc a 75 yuan premium, lead at a 1,630 yuan discount and nickel at a 2,647 yuan premium.

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

Editing by David Goodman and Louise Heavens

Our Standards:The Thomson Reuters Trust Principles.
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