January 9, 2019 / 5:07 AM / 3 months ago

METALS-Base metals rise on China consumption boost, trade optimism

 (Adds Shanghai closing prices, updates London prices)
    BEIJING, Jan 9 (Reuters) - All base metals moved higher on
Wednesday, with London copper hitting a one-week high, after a
report that top consumer China would try to boost spending on
autos and home appliances this year, as well as signs of
progress in Sino-U.S. trade talks. 
    Ning Jizhe, vice chairman of China's National Development
and Reform Commission (NDRC), said in an interview with CCTV
that the policies would be part of wider efforts to strengthen
domestic consumption in China.
    Copper, used in air conditioners, refrigerators and autos,
climbed as much as 1.3 percent to $5,982.50 a tonne in London,
the highest since Jan. 2. 
    Helen Lau, an analyst at Argonaut Securities in Hong Kong,
said the Chinese stimulus would be "positive" for a range of
metals used in autos and home appliances, including copper,
aluminium and steel.
    Chinese auto sales were "hammered by the poor consumption
sentiment when the Sino-U.S. trade war was escalating" in the
second half of 2018, she added in a note. 
            
    FUNDAMENTALS
    * LME COPPER: Three-month copper on the London Metal
Exchange was up 1.1 percent at $5,968.50 a tonne by 0714
GMT, after slipping 0.3 percent in the previous session. The
most-traded March copper contract on the Shanghai Futures
Exchange closed up 0.7 percent at 47,680 yuan 
($6,972.29) a tonne. 
    * TRADE: China's foreign ministry said on Wednesday that the
latest round of trade talks with the United States had
concluded, with the results to be released soon.
    * GRASBERG: Exports of copper concentrate from Indonesia's
Grasberg mine, the world's second-largest copper mine, are
expected to drop to 200,000 tonnes this year from around 1.2
million tonnes in 2018, an official at the Energy and Mineral
Resources Ministry said on Wednesday.   
    * VEDANTA: India's Supreme Court on Tuesday cleared the way
for Vedanta to reopen its south Indian copper smelter
by refusing to stay an order from the country's environmental
court.
    * OTHER METALS: Nickel, used to make stainless steel, led
the gains in a broad base metals rally, touching one-month highs
in London and Shanghai. It gained as much as 1.3 percent in
London to $11,320 a tonne, the highest since Dec. 4, and
closed up 1.3 percent in Shanghai.    
    * For the top stories in metals and other news, click       
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    MARKETS NEWS    
    * Asian shares climbed to a 3-1/2-week high on Wednesday and
European and U.S. markets looked set to follow on growing
optimism that the United States and China were inching toward a
trade deal that could lift a major threat to the global economy.
    
        
    PRICES    
 BASE METALS PRICES                       0722 GMT
 Three month LME copper                     5966.5
 Most active ShFE copper                     47670
 Three month LME aluminium                  1878.5
 Most active ShFE aluminium                  13470
 Three month LME zinc                         2506
 Most active ShFE zinc                       20840
 Three month LME lead                       1980.5
 Most active ShFE lead                       17575
 Three month LME nickel                      11245
 Most active ShFE nickel                     91340
 Three month LME tin                         20145
 Most active ShFE tin                       146810
                                                  
 BASE METALS ARBITRAGE                            
 LME/SHFE COPPER             LMESHFCUc3     344.34
 LME/SHFE ALUMINIUM          LMESHFALc3   -1317.21
 LME/SHFE ZINC               LMESHFZNc3     231.88
 LME/SHFE LEAD               LMESHFPBc3    1066.23
 LME/SHFE NICKEL             LMESHFNIc3    1206.76
 ($1 = 6.8385 Chinese yuan)

    
 (Reporting by Tom Daly
Editing by Rashmi Aich and Sunil Nair)
  
 
 
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