April 19, 2017 / 1:54 AM / 3 months ago

METALS-London copper hovers near three-month low

5 Min Read

    MELBOURNE, April 19 (Reuters) - London copper hovered close
to its weakest since January on Wednesday, on concerns China's
base metals demand could temper in the coming quarter following
a wobble in steel. 
    
    FUNDAMENTALS
    * LME COPPER: Three-month copper on the London Metal
Exchange climbed by 0.5 percent to $5601.50 a tonne by
0120 GMT, paring 2.1 percent losses from the previous session,
when prices hit their lowest since early January at $5,568 a
tonne.
    * SHFE: Shanghai Futures Exchange copper dropped 2
percent to 45,380 yuan ($6,598) a tonne. Steel-linked metals,
Shanghai zinc and nickel were punished by losses in the sector
amid mounting China inventories and record steel production.
Steel demand, used early in the construction cycle, is seen as a
forward indicator for demand intensity of other metals. 
    * Shanghai zinc declined 3.8 percent, following
similar losses in London overnight, while Shfe nickel
fell 3 percent, having tracked a steep slide on the LME in the
previous session. 
    * CHINA PROPERTY: Prices in China's sizzling property
market, a major driver of growth in the world's second-largest
economy, accelerated in March on a monthly basis, shaking off
the impact of recent cooling measures introduced to dampen
speculative demand.
    * CHINA ECONOMY: A recovery in China's industrial sector,
which accounts for about one-third of the economy, drove China's
better-than-expected first quarter economic growth as export
orders picked up and steel output hit a record.
    * IMF: The International Monetary Fund raised its 2017
global growth forecast on Tuesday due to manufacturing and trade
gains in Europe, Japan and China, but warned that protectionist
policies threaten to choke a broad-based recovery.
   * U.S. ECONOMY: U.S. homebuilding fell in March after
unseasonably mild weather buoyed activity in February and
manufacturing output dropped for the first time in seven months,
further indications that economic growth braked sharply in the
first quarter.
    * PERU MINING: Peru expects investments of more than $37
billion in mining projects through 2021, Energy and Mining
Minister Gonzalo Tamayo said on Tuesday. 
    * CHILE DISRUPTION: A supervisor at the Salvador copper mine
owned by Chile's Codelco            died in an accident on
Tuesday, causing the state-owned company to suspend operations
at its concentrator plant there.
    * FREEPORT: Freeport McMoRan Inc has received
preliminary approval to resume copper concentrate exports from
its Indonesian operation and hopes to lodge an application for
an export permit this week, a company spokesman said.

        
    MARKETS NEWS    
    * Sterling stole the show in Asia on Wednesday amid
speculation Britain's surprise decision to call a snap election
could ultimately deliver a more market-friendly outcome in its
divorce from the European Union.    
        
    DATA/EVENTS    
    0900  Euro zone Eurostat trade Feb 
    0900  Euro zone Inflation final Mar 
    1800  U.S. Federal Reserve's Beige Book     
    PRICES    
    
 BASE METALS PRICES                                    
 Three month LME copper                            5617
 Most active ShFE copper                          45540
 Three month LME aluminium                       1909.5
 Most active ShFE aluminium                       14315
 Three month LME zinc                              2533
 Most active ShFE zinc                            20855
 Three month LME lead                              2121
 Most active ShFE lead                            15720
 Three month LME nickel                            9365
 Most active ShFE nickel                          78350
 Three month LME tin                              19640
 Most active ShFE tin                            140620
                                                       
 BASE METALS ARBITRAGE                                 
 LME/SHFE COPPER             LMESHFCUc3          437.48
 LME/SHFE ALUMINIUM          LMESHFALc3         -959.18
 LME/SHFE ZINC               LMESHFZNc3          167.09
 LME/SHFE LEAD               LMESHFPBc3        -1844.95
 LME/SHFE NICKEL             LMESHFNIc3            1619
 
($1 = 6.8778 Chinese yuan)

    
 (Reporting by Melanie Burton; Editing by Sherry Jacob-Phillips)
  
 
 

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