Base metals rise as dollar rally ebbs, trade fears cap upside
(Adds closing prices)
By Maytaal Angel
LONDON, Sept 12 (Reuters) - Base metals recovered on
Wednesday, with nickel moving off an 8-1/2 month low as a dollar
rally ran out of steam, but gains were capped by fresh sparring
between Washington and Beijing over trade and by sinking steel
prices in China.
U.S. President Donald Trump said on Tuesday the United
States was taking a tough stance with China. That cemented
expectations that fresh levies on Chinese exports will soon be
Still, the dollar, which has benefited from heightened trade
tensions, slipped versus a basket of currencies, making
dollar-priced metals cheaper for non-U.S. investors.
"The weaker dollar gives an opportunity to buy. Metals are
oversold on these trade concerns," said SP Angel analyst John
"Trump may have one last swing with the tariff axe but he's
likely to back off as he did with the EU, to settle with
something that is far more akin to free trade than what the
In China, steel prices tumbled for a second day as Beijing
mulls allowing its northern provinces to decide individual
output cuts by heavy industry - a move that could lead to
Nickel and zinc are key steelmaking raw materials.
* PRICES: Three-month nickel on the London Metal
Exchange closed up 3.9 percent at $12,620 a tonne, having hit
its lowest since late December at $12,085, while bellwether
copper ended up 2.4 percent at $5,997 a tonne, having
hit its highest in more than a week.
Zinc, used to galvanise steel, climbed 2.6 percent
to $2,370.50, having hit its lowest since mid-August on Tuesday,
while aluminium ended up 1 percent at $2,064 a tonne,
having hit its weakest since mid-August.
* ALUMINIUM TECHNICALS: Three-month aluminium traded at a
discount of $39 a tonne to the three-month price <CMAL0-3> as
the market continues to discount the possibility that supplies
from Russia's Rusal will be unavailable due to U.S. sanctions.
For a column on aluminium click:
* NORILSK: Norilsk Nickel analyst Alex Khodov said the
global nickel deficit would be 90,000 tonnes in the first eight
months of 2018 and reach 120,000 tonnes by the year-end.
* CONGO: Democratic Republic of Congo's mines minister said
a new mining code signed into law in March that hikes royalties
and taxes cannot be called into question. Congo is Africa's top
* OTHER METALS: Lead closed up 2.8 percent at $2,020
a tonne while tin ended flat at $19,050.
(Additional reporting by Tom Daly; Editing by Kirsten Donovan
and David Evans)
First Published: 2018-09-12 03:57:42
Updated 2018-09-12 18:15:57
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