January 30, 2018 / 4:35 AM / 20 days ago

METALS-Base metals lose ground as dollar firms ahead of Trump address

 (changes analyst comment; updates prices)
    BEIJING, Jan 30 (Reuters) - Base metals prices fell across
the board on Tuesday due to a strengthening dollar, as investors
waited for positive signals about infrastructure building in
U.S. President Donald Trump's State of the Union address later
in the day. 
    A stronger dollar makes metals more expensive for holders of
other currencies. 
    "With a stronger USD and all the global equity markets
giving up ground the metals stood little chance of not having a
correction," Malcolm Freeman, CEO of Kingdom Futures, wrote in a
note. 
    Zinc was down 1 percent in London at $3,516 a tonne
as of 0720 GMT, having touched $3,584, its highest since July
2007, on Monday.
    It is "all well and good having metals such as zinc hitting
10-year highs but in front of the Chinese New Year break and a
relatively flat physical market the rally could not be sustained
for the time being," Freeman added.
         
    FUNDAMENTALS
    * LME COPPER: Three-month copper on the London Metal
Exchange was down 0.8 percent at $7,027.50 a tonne, as
of 0720 GMT, after rising as much as 0.5 percent earlier in the
session.
    * SHFE COPPER: The most-traded March copper contract on the
Shanghai Futures Exchange closed down 0.9 percent at
52,970 yuan ($8,362.54)a tonne.
    * USD: The dollar index was up 0.3 percent at 89.530, with
the currency holding above a recent three-year low, as traders
turn their attention Trump's speech and a Federal Reserve policy
meeting for catalysts.
    * SHFE ALUMINIUM: Shanghai's most-traded March aluminium
contract was the biggest loser in the base metals
complex, ending down 1.5 percent at 14,470 yuan a tonne for its
lowest close since Dec. 14, as record-high stock levels in China
continue to weigh on prices.    
    * NORWAY: Norwegian aluminium maker Norsk Hydro
plans to transfer energy-saving technology from a pilot project
to primary smelters in the next five to six years, boosting
output and cutting costs, the company's head of technology told
Reuters.
    * TRADING PLACES: Singapore-based metals trader Kyen
Resources said it was setting up a trading desk in London as it
pushes to expand its recycled metals and concentrates trading
business.
    * For the top stories in metals and other news, click       
 or     
        
    MARKETS NEWS    
    * Asian stocks retreated from record highs on Tuesday after
a selloff in Apple shares and spike in bond yields knocked Wall
Street lower, while the dollar found support as U.S. bond yields
climbed to near four-year highs.    
        
    PRICES    
    
 BASE METALS PRICES                         0720 GMT
 Three month LME copper                       7027.5
 Most active ShFE copper                       52970
 Three month LME aluminium                      2217
 Most active ShFE aluminium                    14470
 Three month LME zinc                           3516
 Most active ShFE zinc                         26825
 Three month LME lead                           2604
 Most active ShFE lead                         19535
 Three month LME nickel                        13585
 Most active ShFE nickel                      103760
 Three month LME tin                           21720
 Most active ShFE tin                         150030
                                                    
 BASE METALS ARBITRAGE                              
 LME/SHFE COPPER              LMESHFCUc3     1038.82
 LME/SHFE ALUMINIUM           LMESHFALc3    -1838.14
                                          
 LME/SHFE ZINC                LMESHFZNc3      436.19
 LME/SHFE LEAD                LMESHFPBc3     -345.73
 LME/SHFE NICKEL              LMESHFNIc3     2322.27
                                          
 
($1 = 6.3342 Chinese yuan)

    
 (Reporting by Tom Daly; Editing by Sherry Jacob-Phillips and
Sunil Nair)
  
 
 
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