January 10, 2019 / 5:17 AM / 12 days ago

METALS-London copper picks up on weaker dollar; tin near 6-month top

 (Adds Shanghai closing prices, updates London prices)
    BEIJING, Jan 10 (Reuters) - London copper prices rose for
the fourth session in five on Thursday, as a weaker dollar
enabled the metal to hold gains made from optimism over
U.S.-China trade talks. 
    A weaker greenback makes dollar-denominated metals cheaper
for holders of other currencies and can support prices.
    However, prices in top consumer China, which reported more
disappointing factory data on Thursday, failed to sustain the
momentum, with Shanghai copper slipping 0.1 percent. 
    Recent transactions in the refined and scrap copper markets
have been ordinary, consistent with the off-season, and
"fundamentals cannot support the copper price," Jinrui Futures
wrote in a note.
    Instead, prices for copper, an economic bellwether, will
move higher on improving macro sentiment and lower on weakening
sentiment, the Chinese brokerage added.  
        
    FUNDAMENTALS
    * LME COPPER: Three-month copper on the London Metal
Exchange was up 0.3 percent at $5,978 a tonne, as of
0716 GMT. The most-traded March copper contract on the Shanghai
Futures Exchange closed down 0.1 percent at 47,510 yuan
 ($6,996.54) a tonne.
    * TRADE: China's commerce ministry said trade talks with the
United States this week were extensive and detailed, and
established a foundation for the resolution of each others'
concerns. "This would normally have been enough to encourage
metals buyers but the news was rather offset by the Chinese PPI
and CPI numbers falling short of forecasts," Malcolm Freeman of
Kingdom Futures wrote in a note.
    * CHINA: China's producer price index (PPI) in December rose
at its slowest pace in more than two years.
    * USD: The dollar weakened versus major peers due to
growing expectations the Federal Reserve will pause its rate
tightening cycle this year.
    * OTHER METALS: The LME complex was higher across the board,
with aluminium, nickel, lead and tin
 adding around 0.3 percent each.
    * TIN: The metal closed above $20,000 a tonne for the first
time since late June on Wednesday. "The price rise is likely to
have been triggered by concerns about supply, for Indonesia –
the world's largest tin exporter – has been exporting
considerably less tin since October," Commerzbank said in a
note. 
    * For the top stories in metals and other news, click       
 or     
        
    MARKETS NEWS    
    * Asian shares edged up on Thursday as stimulus expectations
and a rise in the yuan helped Chinese equities erase early
losses, while markets awaited more news on U.S.-China trade
talks amid hopes an all-out trade war can be averted.
    
    PRICES    
 BASE METALS PRICES                       0725 GMT
 Three month LME copper                       5976
 Most active ShFE copper                     47520
 Three month LME aluminium                    1858
 Most active ShFE aluminium                  13405
 Three month LME zinc                         2493
 Most active ShFE zinc                       20660
 Three month LME lead                         1974
 Most active ShFE lead                       17450
 Three month LME nickel                      11275
 Most active ShFE nickel                     91550
 Three month LME tin                         20130
 Most active ShFE tin                       146310
                                                  
 BASE METALS ARBITRAGE                            
 LME/SHFE COPPER             LMESHFCUc3     434.03
 LME/SHFE ALUMINIUM          LMESHFALc3   -1201.34
 LME/SHFE ZINC               LMESHFZNc3      279.1
 LME/SHFE LEAD               LMESHFPBc3    1090.78
 LME/SHFE NICKEL             LMESHFNIc3    1683.04
 ($1 = 6.7905 Chinese yuan renminbi)

    
 (Reporting by Tom Daly, Editing by Sherry Jacob-Phillips and
Rashmi Aich)
  
 
 
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