Copper weakens ahead of Trump speech on trade
* GRAPHIC-2019 asset returns: http://tmsnrt.rs/2jvdmXl
(Updates with closing prices)
By Zandi Shabalala
LONDON, Nov 12 (Reuters) - Copper fell to a one-week low on
Tuesday ahead of a speech by U.S. President Donald Trump in
which he is expected to announce a delay in auto tariffs and
provide clues about the direction of the wider U.S-China trade
Benchmark copper on the London Metal Exchange (LME)
ended down 0.2% at $5,869 per tonne, falling for a third
The months-long Sino-U.S. trade conflict has weighed on
global economic growth, including in China, which accounts for
about half of the world's metal demand.
Copper, widely used in power and construction and seen as a
gauge of economic health, hit a two-year low of $5,518 in
Markets were anticipating a further delay in a decision on
whether Trump will slap tariffs on cars and auto parts imported
from the European Union.
Copper will be rangebound until there are clearer signals on
trade, said ING Senior Commodities Strategist Wenyu Yao. "We are
waiting for the tone regarding the U.S.-China talks during
Trump's speech," she said.
DATA: Markets were also looking ahead to industrial
production in China on Thursday, which is expected to show a
slowdown in October.
INVENTORIES: Headline LME copper stocks fell 4,850 tonnes to
229,350, the lowest since June 11. LME copper stocks have been
declining since August when they hit a 2019 peak. <MCUSTX-TOTAL>
SPREADS: Spreads pointed to a well-supplied market, with
cash copper deepening its discount to the three-month contract
<CMCU0-3> to about $18 a tonne.
SUPPLY: Most of Chile's copper miners maintained operations,
albeit with some delays, amid calls for a general strike, unions
and management teams told Reuters.
COLUMN: Fund short positions on the CME copper contract have
shrunk over the last few weeks as the prospect of a trade deal
becomes more credible.
NICKEL: Nickel prices fell for a seventh session to
a three-month low after top producer Indonesia allowed nine
companies to resume ore exports until year-end. Shipments were
halted on Oct. 28.
Prices for the metal used to make stainless steel hit a
five-year high in September after the Southeast Asian country
brought forward a ban on ore exports by two years.
On Tuesday, they fell 0.6% to $15,475 a tonne, a more than
LOCAL SALES: Indonesia's nickel miners are prepared to sell
their ore to local smelters if they are offered competitive
pricing compared with overseas buyers, the industry association
OTHER METALS: LME aluminium was steady at $1,778 a
tonne, zinc shed 1% to $2,472, lead ceded 1.5%
to $2,059, and tin lost 1.4% to $16,340.
(Reporting by Zandi Shabalala; Additional reporting by Tom Daly
in Shanghai; Editing by Jan Harvey and Jane Merriman)
First Published: 2019-11-12 04:33:42
Updated 2019-11-12 19:30:30
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