September 17, 2018 / 5:13 AM / 2 months ago

METALS-Base metal prices drop as spectre of new U.S. tariffs looms

 (Adds Shanghai closing prices, updates London prices)
    BEIJING, Sept 17 (Reuters) - Base metals prices fell sharply
on Monday on reports that the United States may be about to
impose tariffs on another $200 billion worth of Chinese goods. 
    The tit-for-tat trade row between the world's top two
economies has left investors fearing that demand for industrial
metals will soften. 
    U.S. President Donald Trump is likely to impose the tariffs,
which were first unveiled in July, as early as Monday, a senior
administration official told Reuters on Saturday.
    "All eyes will be on trade talks, with the likelihood of
further U.S. tariffs on Chinese imports likely to weigh on
industrial commodity prices," ANZ wrote in a note.
    
    FUNDAMENTALS
    * COPPER: Three-month copper on the London Metal Exchange
 fell as much as 1.9 percent to $5,861.50 a tonne and
stood at $5,895.50 a tonne as of 0704 GMT. The most-traded
November copper contract on the Shanghai Futures Exchange
 closed down 1.4 percent at 47,930 yuan ($6,977.52) a
tonne.
     * COPPER PREMIUMS: Chinese copper import premiums
SMM-CUYP-CN are currently assessed at $96 a tonne, the highest
since February 2016, as low prices tempt bargain-hunters,
propping up demand for physical metal.
     * OTHER METALS: LME nickel fell furthest, slumping
2.7 percent to $12,315 a tonne. Only Shanghai tin was
in positive territory, closing up 0.2 percent.
    * ALUMINIUM: Shares in China Hongqiao Group, the
world's biggest aluminium producer, tumbled for a second day on
Monday after the company's home province of Shandong said it was
introducing fees for onsite power plants.  
    * TAXES: Chile's congress is studying a proposal for an
additional royalty payment for copper and lithium miners
operating in the country to bolster the development of the
regions around their deposits, according to a draft seen by
Reuters.     
    * HYDRO/RIO: Norway's Hydro said on Friday it had
dropped plans to buy several of Rio Tinto's,
assets, including an aluminium plant in Iceland, after approval
from European Commission regulators took longer than
anticipated.
    * For the top stories in metals and other news, click       
 or     
        
    MARKETS NEWS    
    * Most Asian share markets slid on Monday amid reports
Washington was about to announce a new round of tariffs on
Chinese imports, setting the stage for possible reprisals by
Beijing.
            
            
    PRICES
 BASE METALS PRICES                        0708 GMT
 Three month LME copper                      5894.5
 Most active ShFE copper                      47920
 Three month LME aluminium                   2012.5
 Most active ShFE aluminium                   14445
 Three month LME zinc                        2303.5
 Most active ShFE zinc                        20435
 Three month LME lead                        2021.5
 Most active ShFE lead                        18680
 Three month LME nickel                       12320
 Most active ShFE nickel                     102080
 Three month LME tin                          18925
 Most active ShFE tin                        144320
                                                   
 BASE METALS ARBITRAGE                             
 LME/SHFE COPPER              LMESHFCUc3     805.47
 LME/SHFE ALUMINIUM           LMESHFALc3   -1520.25
 LME/SHFE ZINC                LMESHFZNc3     1421.8
 LME/SHFE LEAD                LMESHFPBc3    1294.39
 LME/SHFE NICKEL              LMESHFNIc3    3079.58
 ($1 = 6.8692 Chinese yuan renminbi)

    
 (Reporting by Tom Daly; Editing by Richard Pullin and Vyas
Mohan)
  
 
 
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below