July 5, 2017 / 6:50 AM / 5 months ago

METALS-London copper marks time, strike threat supports

 (Updates prices)
    By Melanie Burton
    MELBOURNE, July 5 (Reuters) - London copper was steady on
Wednesday, supported by strike threats at a South American
copper producer, while worries over tepid demand growth from top
consumer China in the second half dragged on prices.
    "We think base metals have gotten somewhat ahead of
themselves during the course of June," Ed Meir of INTL FCSTONE
said in a report.
    "China's macro numbers remain decent, but most economists
expect growth to moderate going into the second half. The sector
to watch is real estate; we think the recent price advances in
prices are becoming increasingly untenable against a backdrop of
tightening credit and affordability," he said.
    "The rate of decline (in house prices) should accelerate as
time goes on and we should see more of a restraining price
impact on both ferrous and nonferrous metals as a result."
    * LME COPPER: London Metal Exchange copper had edged
down 0.1 percent to $5,884.50 a tonne by 0732 GMT, having logged
modest losses of 0.6 percent in the previous session. Prices,
which failed near resistance at $6,000 a tonne, are now easing
to support at the 100-day moving average of $5,774.
    * SHFE COPPER: Shanghai Futures Exchange copper cut
losses to edge down 0.2 percent to 47,140 yuan ($6,935) a tonne.
     * ANTOFAGASTA: Chilean mining company Antofagasta Minerals
, one of the biggest global copper producers, was facing
potential strikes from workers at its Zaldivar mine and by
supervisors at Centinela as contract talks continue.

    * CHINA ECONOMY: China's services sector grew at a slower
pace in June as new orders slumped, signalling renewed pressure
on businesses.
    * NORTH KOREA: North Korea said on Wednesday it had
conducted a test of a newly developed intercontinental ballistic
missile that can carry a large and heavy nuclear warhead.
    * GLENCORE: A group of former traders from commodity house
Glencore are set to launch an online platform on
Wednesday that allows mining companies and smelters to cut out
the middlemen and save cash on deals for concentrates. 
    * BAUXITE, NICKEL: Indonesia has issued recommendations to
two more companies to allow them to export mineral ores.

    * CHINA ECONOMY: China's central bank said on Tuesday the
shadow banking sector lacks sufficient regulation and the bank
would give more prominence to financial risk controls.
    * For the top stories in metals and other news, click       
    * Asian share markets were subdued for a second session on
Wednesday as simmering tensions on the Korean peninsula
supported safe-harbours including the yen, bonds and
    COMING UP: U.S. Factory orders May at 1400 GMT, Federal
Reserve to release minutes from June meeting at 1800 GMT
 BASE METALS PRICES                   0730 GMT           
 Three month LME copper                            5884.5
 Most active ShFE copper                            47130
 Three month LME aluminium                           1929
 Most active ShFE aluminium                         14160
 Three month LME zinc                                2779
 Most active ShFE zinc                              22915
 Three month LME lead                                2277
 Most active ShFE lead                              17470
 Three month LME nickel                              9130
 Most active ShFE nickel                            75230
 Three month LME tin                                20020
 Most active ShFE tin                              145530
 BASE METALS ARBITRAGE                                   
 LME/SHFE COPPER                LMESHFCUc3         459.82
 LME/SHFE ALUMINIUM             LMESHFALc3        -1035.5
 LME/SHFE ZINC                  LMESHFZNc3         246.12
 LME/SHFE LEAD                  LMESHFPBc3       -1401.52
 LME/SHFE NICKEL                LMESHFNIc3        2730.17

($1 = 6.7971 Chinese yuan)

 (Reporting by Melanie Burton; Editing by Richard Pullin and
Joseph Radford)

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