July 1, 2019 / 1:21 AM / 20 days ago

CORRECTED-METALS-Copper hits 6-week high after US, China agree to restart trade talks

(Corrects copper price in paragraph 3 to $6,071.50 a tonne, from $6,701.50)

SINGAPORE, July 1 (Reuters) - Copper and other base metals rallied on Monday, after the United States and China agreed to restart trade talks, easing risks of severe global economic growth that hurt demand for metals.

U.S. President Donald Trump on Saturday offered concessions, including no new tariffs and an easing of restrictions on tech company Huawei, while China agreed to make new purchases of U.S. farm products and return to the negotiating table.

Benchmark copper in London rose 1.3% to $6,071.50 a tonne by 0106 GMT, its highest since May 20, while the most-traded copper contract on the Shanghai Futures Exchange advanced 0.9% to 47,420 yuan ($6,907.50) a tonne.

All other base metals rallied on the London Metal Exchange, with London nickel touching its highest since April 18, while all metals except tin rose in Shanghai.

“The markets hopes were realised, with Trump and Xi agreeing to resume talks. This should boost sentiment in the base metals sector, despite China’s PMI for June coming in under 50 for the second month in a row,” said ANZ in a note.

China’s official Purchasing Managers’ Index (PMI) stood at 49.4 in June, showing factory activity shrinking more than expected in June, as U.S. tariffs and weaker domestic demand pressured on new orders.

FUNDAMENTALS

* LONG ROAD: China and the United States will face a long road before they can reach a deal to end their bitter trade war, with more fights ahead likely, Chinese state media said after the two countries’ presidents held ice-breaking talks in Japan.

* CHUQUICAMATA: Chile’s Codelco, the world’s top copper miner, said on Friday its Chuquicamata mine was fully operational after a two-week long strike that had docked output from the sprawling deposit came to an end.

* GLENCORE: The number of artisanal miners killed by a landslide at a copper and cobalt mine run by Glencore in Congo rose to 43 on Friday and officials said the army would deploy at the mine as the search for more victims continued.

* For the top stories in metals and other news, click or

MARKETS NEWS

* Stocks rallied and bonds retreated in Asia as a thaw in the Sino-U.S. trade dispute tempered risks to the global economy, leading investors to pare wagers on aggressive policy easing by the major central banks.

DATA/EVENTS (GMT)

0030 Japan Nikkei Mfg PMI June

0030 Indonesia Nikkei PMI June

0145 China Caixin Mfg PMI Final June

0400 Indonesia Inflation YY June

0500 India Nikkei Markit Mfg PMI June

0600 Russia Markit Mfg PMI June

0750 France Markit Mfg PMI June

0755 Germany Markit/BME Mfg PMI June

0755 Germany Unemployment Chg SA June

0755 Germany Unemployment Rate SA June

0800 Euro Zone Markit Mfg Final PMI June

0830 UK Markit/CIPS Mfg PMI June

0900 Euro Zone Unemployment Rate May

1300 Brazil Markit Mfg PMI June

1345 US Markit Mfg PMI Final June

1400 US ISM Manufacturing PMI June

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 = 6.8650 Chinese yuan)

Reporting by Mai Nguyen; Editing by Rashmi Aich

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