November 26, 2018 / 4:37 AM / 23 days ago

METALS-Nickel, zinc drop on weaker China demand; focus on Trump-Xi meeting

 (Recasts throughout, updates closing prices)
    By Mai Nguyen and Melanie Burton
    HANOI/MELBOURNE, Nov 26 (Reuters) - Steel-linked metals
nickel and zinc fell on Monday on expectations of weaker demand
from Chinese steel mills.
    All other base metals declined amid caution ahead of trade
talks between U.S. President Donald Trump and Chinese President
Xi Jinping later this week.    
    "The market started to be really concerned about the
uncertainty of what the outcome will be from the U.S.-China
trade talk," said analyst Helen Lau of Argonaut Securities.
        
    ZINC: Shanghai Futures Exchange zinc          settled down
2.5 percent at 20,540 yuan ($2,958.63) a tonne, posting its
biggest single-day drop since August, while London zinc        
fell 0.6 percent to $2,504 a tonne by 0709 GMT.
    NICKEL: London nickel         traded 0.6 percent weaker but
Shanghai nickel          bucked the trend among base metals to
settle up 0.2 percent. Nickel stockpile in LME warehouses is
around a five-year low, at 214,188 tonnes MNISTX-TOTAL.
    STEEL: Chinese iron ore futures tumbled and steel prices
dropped as worries over weaker steel demand sustained a
sell-off, with raw materials coking coal and coal also down
sharply.            
    TIN: Shfe tin          settled 1.4 percent lower and LME tin
        slipped 0.1 percent amid rising stocks and expected
weaker demand in China next year. 
    DEMAND: Weaker Chinese demand is expected to move the global
tin market into a surplus of 500 tonnes next year from a
7,500-tonne deficit in 2018, the International Tin Association
said on Friday, while China's tin warehouse supplies hit 8,200
tonnes, the highest in more than a year and up by 73 percent
from late August SSN-TOTAL-D.             
    CHINA GROWTH: China's economic growth is expected to hit 6.6
percent this year and slow to 6.3 percent in 2019 as the country
struggles with challenges relating to trade and structural
reform, economists from Beijing's Renmin University said.
            
    CHINA-U.S.: A G20 summit scheduled later this week in
Argentina is expected to set a trade war turning point, when
leaders from the two biggest economies meet to address trade
tensions that have been increasingly hurting global growth.
            
    U.S. DOLLAR: The dollar held broad gains on Monday as
investors sought shelter in the world's most liquid currency on
fears of a slowdown in global economic growth and as U.S.-Sino
trade tensions sapped risk appetite. A stronger dollar makes it
more expensive to import greenback-commodities into countries
using other currencies.       
    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 = 6.9424 Chinese yuan)

    
 (Reporting by Mai Nguyen in Singapore and Melanie Burton in
Melbourne; Editing by Subhranshu Sahu)
  
 
 
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