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METALS-Copper drifts lower on U.S.-China trade uncertainty

Mon, 23rd Sep 2019 02:56

BEIJING, Sept 23 (Reuters) - London copper prices edged lower in early Asian trade on Monday, as U.S.-China talks failed to send a positive signal towards a trade-row breakthrough.

The sentiment was dampened after Chinese officials unexpectedly cancelled a planned visit to U.S. farms following two days of talks.

Most industrial metals have lost ground so far in 2019 amid concerns the trade war will hurt demand.

FUNDAMENTALS

* COPPER: Three-month copper on the London Metal Exchange slipped 0.3% to $5,781 a tonne as of 0153 GMT, after ending a four-day losing streak with a 0.2% gain on Friday. The most-traded November copper contract on the Shanghai Futures Exchange was flat at 47,110 yuan ($6,643.73) a tonne.

* TRADE: The U.S. Trade Representative's office issued a statement characterising the talks with China as "productive" and said a principal-level trade meeting in Washington would take place in October as planned. China's Commerce Ministry described the talks as "constructive."

* COPPER: Pan Pacific Copper (PPC), Japan's top copper smelter, expects a global shortage in copper to be less acute next year as top consumer China's output increases and its demand growth softens amid the prolonged U.S.-Sino trade row, a company official said.

* CHINA: Chinese customs will report final trade data for August - including scrap metal and alumina imports - on Monday.

* OTHER METALS: All LME metals were slightly in the red except for lead, which was flat after earlier hitting a fresh six-month high of $2,126 a tonne. In Shanghai, nickel rose as much as 2.3% to a one-week high of 139,960 yuan a tonne, tracking a rise on the LME on Friday amid stockpiling by stainless steel producers.

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MARKETS NEWS

* Wall Street stock futures edged up in early trade on Monday, setting an upbeat tone for Asian markets.

DATA AHEAD (GMT)

0715 France Markit Mfg, Serv, Comp Flash PMIs Sept

0730 Germany Markit Mfg, Serv, Comp Flash PMIs Sept

0800   EU         Markit Mfg, Serv, Comp Flash PMIs      Sept

1330 Brazil Current Account, Foreign Direct Invest Aug 1345 US Markit Mfg, Serv, Comp Flash PMIs Sept

PRICES

 BASE METALS PRICES                       0153 GMT
 Three month LME copper                       5781
 Most active ShFE copper                     47110
 Three month LME aluminium                  1788.5
 Most active ShFE aluminium                  14205
 Three month LME zinc                         2298
 Most active ShFE zinc                       18845
 Three month LME lead                       2114.5
 Most active ShFE lead                       16895
 Three month LME nickel                      17385
 Most active ShFE nickel                    137900
 Three month LME tin                         16730
 Most active ShFE tin                       137550
BASE METALS ARBITRAGE
 LME/SHFE COPPER              LMESHFCUc3    633.24
 LME/SHFE ALUMINIUM           LMESHFALc3   -234.97

 LME/SHFE ZINC                LMESHFZNc3    155.25
 LME/SHFE LEAD                LMESHFPBc3   -709.57
 LME/SHFE NICKEL              LMESHFNIc3  -4836.05
($1 = 7.0909 Chinese yuan renminbi) (Reporting by Tom Daly; Editing by Rashmi Aich)

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