June 26, 2018 / 3:04 AM / in 4 months

METALS-Copper near 3-month low on trade tensions, zinc at 10-month trough

 (Updates prices)
    By Naveen Thukral
    SINGAPORE, June 26 (Reuters) - London copper edged lower on
Tuesday, trading near its weakest level in almost three months,
with risk appetite curbed by escalating trade tensions between
the United States and top industrial metals consumer China.
    Zinc edged down to trade at the last session's lowest price
since early August as rising inventories weighed on the market.
    Global stocks extended a sell-off as the mounting trade
tensions between the United States and other major economies
continued to steer investors away from riskier assets, lifting
safe-haven U.S. Treasuries and keeping the dollar on the
defensive.
    "Rising trade tensions once again weighed on the base metals
sector," ANZ said in a note.
    "Soft fundamental data also exacerbated the weakness. Zinc
led the sector lower, after data showed the market was in
surplus for the first four months of the year."
    The U.S.-China trade spat is putting pressure on commodity
and financial markets. A government official told Reuters on
Sunday that the Treasury was drafting curbs that would block
firms with at least 25 percent Chinese ownership from buying
U.S. companies with "industrially significant technology."
    U.S. Treasury Secretary Steven Mnuchin on Monday said
forthcoming investment restrictions would not be specific to
China, but would apply "to all countries that are trying to
steal our technology."     
    
    FUNDAMENTALS
    COPPER: Three-month copper on the London Metal Exchange
 was down 0.3 percent at $6,733.50 a tonne, as of 0717
GMT, not far above Monday's low of $6,702.50, which was its
weakest since April 4. The most-traded copper contract on the
Shanghai Futures Exchange dropped 0.4 percent to settle
at 51,630 yuan ($7,878) a tonne.
    ZINC: Benchmark LME zinc was down 0.4 percent at
$2,847 a tonne after dropping earlier in the session to $2,835,
matching Monday's low, which was the weakest since Aug. 7. In
China, zinc prices fell to their lowest since early
August at 22,380 yuan a tonne.
    INVENTORIES: Daily data showed zinc on-warrant inventories -
those not earmarked for delivery - in warehouses certified by
the London Metal Exchange rose 2,300 tonnes to 241,525 tonnes.
They have shot up 83 percent since the beginning of March.
MZNSTX-TOTAL
    CODELCO: Workers at Codelco's Chuquicamata copper mine in
Chile, the state miner's second largest by output, are
threatening to walk off the job soon to protest plans to
transform the century-old open pit into an underground mine, a
union leader said.
    SAMARCO: Samarco            and parent companies Vale SA
 and BHP Billiton Ltd have signed a deal with
Brazilian authorities that settles a 20 billion reais ($5.30
billion) lawsuit related to a 2015 dam burst that killed 19
people.

                                                     0717 GMT
 Three month LME copper                                6733.5
 Most active ShFE copper                                51630
 Three month LME aluminium                               2146
 Most active ShFE aluminium                             14030
 Three month LME zinc                                    2847
 Most active ShFE zinc                                  22645
 Three month LME lead                                    2412
 Most active ShFE lead                                  19885
 Three month LME nickel                                 14645
 Most active ShFE nickel                               114340
 Three month LME tin                                    20155
 Most active ShFE tin                                  145270
                                                             
                                                             
 LME/SHFE COPPER                  LMESHFCUc3           220.96
 LME/SHFE ALUMINIUM               LMESHFALc3         -2329.95
 LME/SHFE ZINC                    LMESHFZNc3           340.75
 LME/SHFE LEAD                    LMESHFPBc3           492.95
 LME/SHFE NICKEL                  LMESHFNIc3           868.97
 ($1 = 6.5536 Chinese yuan)

    
 (Reporting by Naveen Thukral
Additional reporting by Manolo Serapio Jr. in Manila
Editing by Sherry Jacob-Phillips and Sunil Nair)
  
 
 
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