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METALS-Copper ticks up on China stimulus hopes

Mon, 19th Aug 2019 05:23

(Updates prices, adds details)

By Mai Nguyen

SINGAPORE, Aug 19 (Reuters) - Copper prices advanced onMonday as China announced new measures to support its economyamid a damaging trade war with the United States, potentiallyimproving demand for the red metal.

China's central bank over the weekend unveiled a keyinterest rate reform in a bid to help steer borrowing costslower for companies.

Three-month copper on the London Metal Exchange rose0.8% to $5,791 a tonne by 0704 GMT, while the most-traded coppercontract on the Shanghai Futures Exchange edged up 0.4%to 46,610 yuan ($6,616.13) a tonne.

However, the metal's rise was capped by weak data thatshowed the Chinese economy continues to be hurt by the ongoingtrade war with the United States, while a trade deal is not yetin sight.

FUNDAMENTALS

* NOT READY: U.S. President Donald Trump said he was lessoptimistic than his aides on striking a trade deal with China,saying that while he believed China was ready to come to anagreement, "I'm not ready to make a deal yet."

* COPPER STOCKS: Copper inventories in LME-registeredwarehouses have jumped by 22% in three days to 331,975 tonnes,while stocks in warehouses tracked by Shanghai Futures Exchangerose 4.1% in a week. <MCUSTX-TOTAL> <CU-STX-SGH>

* NICKEL SPREAD: The premium of LME cash nickel over thethree-month contract <CMNI0-3> eased from a decade-high of $40 atonne to $22 a tonne, suggesting nearby supply tightness haseased but the market was still relatively tight.

* NICKEL STOCKS: Nickel stocks in LME-approved warehouseshovered around their six-year lows at 145,134 tonnes.<MNISTX-TOTAL>

* PHILIPPINES: The Philippines' top exporter of high-gradenickel ore is expected to shut its mining operations soon as oredeposits are nearly depleted.

* "Nickel was the best of the bunch as supply side issueshelped support prices," ANZ said in a note.

* SHANGHAI NICKEL: But Shanghai's on-warrant nickel stocks,or those available for delivery, reached their highest since May2018 on Friday at 28,695 tonnes <SNI-TOTAL-W>.

* NICKEL PRICES: LME nickel fell 0.7%, whileShanghai nickel ticked up 0.1%.

* TIN: LME tin tumbled to its lowest since June2016, while Shanghai tin dropped as much as 3.1% tonear a seven-week low after stocks surged 33% in LME warehousesin one day, latest data on Friday showed. <MSNSTX-TOTAL>

* JAPAN COPPER: Japan's copper cable shipments rose 8.1% to64,300 tonnes in July from a year earlier, the Japan ElectricWire and Cable Makers' Association said.

* PRICES: London aluminium rose 0.6%, zincedged up 0.1% and lead was flat. In Shanghai, aluminiumrose 1.3%, while zinc fell 0.6%.

* For the top stories in metals and other news, clickor

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 = 7.0449 Chinese yuan)

(Reporting by Mai Nguyen; editing by Sriraj Kalluvila andSubhranshu Sahu)

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