By Mai Nguyen
SINGAPORE, Nov 22 (Reuters) - Copper prices edged down on Thursday on worries over slowing global economic growth, hurt by an escalating trade war between Washington and Beijing.
Trade conflict and higher interest rates are slowing the international economy, though there are no signs of a sharp downturn for now, said the Organisation for Economic Cooperation and Development.
The United States and China clashed on Wednesday at a World Trade Organization meeting, with a U.S. envoy accusing Beijing of using the WTO to pursue “non-market” policies and a Chinese official saying it was Washington that was flouting the rulebook.
Base metals traded in tight ranges on Thursday, although the price outlook could improve going into year-end if any signs emerge of a potential thawing in the trade conflict.
“The prospect of Trump being re-elected is higher than it was (before the U.S. mid-term election), then it does increase the incentives for the Chinese to agree to a deal (on trade),” said Guy Wolf, global head of market analytics at Marex Spectron.
COPPER: Three-month copper on the London Metal Exchange had fallen 0.1 percent to $6,230 a tonne by 0746 GMT, while Shanghai’s most-active copper contract closed up 0.4 percent at 49,570 yuan ($7,152.55) a tonne.
NICKEL OUTLOOK: Expectations of a supply avalanche hitting the nickel market next year due to new capacity in Indonesia have been dragging on prices, but analysts doubt the plans spearheaded by Chinese firms can be carried out so quickly.
NICKEL SUPPLY: Nickel stockpiles on the Shanghai Futures Exchange SNI-TOTAL-D edged down to 14,911 tonnes on Wednesday, but were still near a three-month high. However, nickel stockpiles in LME warehouse remained at their lowest in five years MNISTX-TOTAL.
PRICES: The most traded ShFE nickel contract ended 2.1 percent lower at 90,360 yuan a tonne, trading around an 11-month low, while London’s three-month nickel contract fell 0.3 percent.
U.S. DOLLAR: The dollar drifted lower as demand for safe-haven currencies remained subdued after a rebound in global equities, making it cheaper to import greenback-denominated commodities such as base metals.
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 = 6.9304 Chinese yuan)
Reporting by Mai Nguyen Editing by Joseph Radford