February 28, 2018 / 2:31 AM / 3 months ago

METALS-Shanghai metal prices dip after Fed testimony, weak China data

    BEIJING, Feb 28 (Reuters) - Shanghai metals mostly lost
ground on Wednesday after new U.S. Federal Reserve Chairman
Jerome Powell's pledge to stick with gradual increases in
interest rates boosted the dollar and growth in Chinese
manufacturing slowed more than expected.
       
    FUNDAMENTALS
    * SHFE COPPER: The most-traded April copper contract on the
Shanghai Futures Exchange slipped 1 percent to 52,820
yuan ($8,341.36) a tonne by 0208 GMT and is set to end February
at around the same level it started the month.
    * LME COPPER: Three-month copper on the London Metal
Exchange inched up 0.1 percent to $7,028 tonne, having
closed down 1.3 percent on Tuesday.
    * OTHER METALS: Shanghai zinc, nickel and
lead were down 1 percent, 0.3 percent and 1.3 percent,
respectively, with only aluminium in positive territory, rising
0.4 percent.
    * USD: The dollar stood near a three-week high against a
basket of currencies on Wednesday, after Powell's upbeat views
on the economy bolstered bets on further Fed interest rate hikes
this year. A stronger dollar makes metals more expensive for
holders of other currencies, weighing on prices.
    * CHINA: Growth in China's manufacturing sector in February
slowed more than expected to the weakest in over 1-1/2 years as
the Lunar New Year holidays disrupted business activity and
tougher pollution rules curtailed factory output.
    * ALUMINIUM: The U.S. Commerce Department said on Tuesday it
had made a final determination that imports of aluminum foil
from China are being sold in the United States at less than
their fair value and producers are benefiting from subsidies
from Beijing.
    * NORNICKEL: Russian billionaire Vladimir Potanin's
Cyprus-based firm Whiteleave, aluminium giant Rusal
and Roman Abramovich's Crispian have agreed to delay a sale of a
2 percent stake in Norilsk Nickel by Abramovich to
Potanin, a lawyer for Whiteleave said.
    * SCOTIA: Canadian lender Bank of Nova Scotia said
on Tuesday it would keep its ScotiaMocatta metals trading
business, ending months of speculation that it could be sold.

       
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    MARKETS NEWS    
    * Asian shares faltered on Wednesday and bonds were sold off
as risk appetite soured after comments from the new Federal
Reserve Chair revived fears about faster rate rises in the
United States.     
        
    DATA/EVENT AHEAD (GMT)
    0700  Germany      GfK consumer sentiment Mar
    0745  France    Consumer spending Jan
    0745  France    Detailed GDP Q4
    0900  Germany     Unemployment rate Feb
    1000  Euro zone    Inflation flash Feb
    1330  U.S.    GDP second estimate Q4
    1445  U.S.    Chicago PMI Feb
    1500  U.S.      Pending home sales Jan    
        
    PRICES
    
 BASE METALS PRICES                       0207 GMT
 Three month LME copper                       7028
 Most active ShFE copper                     52820
 Three month LME aluminium                  2150.5
 Most active ShFE aluminium                  14290
 Three month LME zinc                       3484.5
 Most active ShFE zinc                       26420
 Three month LME lead                       2551.5
 Most active ShFE lead                       19230
 Three month LME nickel                      13835
 Most active ShFE nickel                    105120
 Three month LME tin                         21690
 Most active ShFE tin                       148490
                                                  
 BASE METALS ARBITRAGE                            
 LME/SHFE COPPER             LMESHFCUc3     999.53
 LME/SHFE ALUMINIUM          LMESHFALc3   -1533.35
                                         
 LME/SHFE ZINC               LMESHFZNc3     297.69
 LME/SHFE LEAD               LMESHFPBc3    -314.42
 LME/SHFE NICKEL             LMESHFNIc3    1763.59
                                         
    ($1 = 6.3323 Chinese yuan)

    
 (Reporting by Tom Daly; Editing by Sunil Nair)
  
 
 
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