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METALS-Copper hovers near 3-yr top as China growth supports
October 17, 2017 / 1:57 AM / a month ago

METALS-Copper hovers near 3-yr top as China growth supports

    SYDNEY, Oct 17 (Reuters) - London copper paused for breath
near three-year highs on Tuesday as it faced headwinds from a
stronger dollar, but renewed optimism over China's economic
outlook has lent support to prices. 
            
    FUNDAMENTALS
    * LME COPPER: London Metal Exchange copper was
little changed at $7,128 a tonne by 0125 GMT, following its
biggest daily jump in eight months at 3.7 percent on Monday.
Prices struck $7,177 a tonne in the previous session, the
highest since July 2014.
    * SHFE COPPER: Shanghai Futures Exchange copper
advanced 2.6 percent to 55,460 yuan ($8,418) a tonne. It earlier
hit its highest since Feb 2013 at 55,910.
    * SCRAP: The market was keeping an eye on reports that China
is enforcing some restrictions on copper imports, including
scrap, traders said.
    * CHINA ECONOMY: China's producer profits and copper imports
have picked up, recent data showed, even as China's economic
growth is expected to ease to 6.8 percent in the third quarter
from 6.9 percent in the previous quarter due to a cooling
property sector and the government's battle against debt risks.

    * RIO TINTO: Rio Tinto cut its mined copper
production guidance for 2017 to 460,000-480,000 tonnes from
500,000-550,000 tonnes owing to a delayed ramp-up at its Chilean
Escondida mine. 
    * ZINC: SHFE zinc slipped by 1 percent but was
still near its highest in 9-1/2 years, having peaked at 26,630
on Oct. 9. LME zinc was also within reach of decade
highs at $3,308.75, with supply constrained by China's crackdown
on polluters in heavy industry.
    * ZINC SPREADS SLACKEN: The premium for cash zinc has
slumped in recent days, suggesting that the metal may be
delivered against short positions as the main October contract
expires this week. LME cash CMZN0-3 is at a $35 premium
against the benchmark, down from $91 on Oct. 12.
    * STOCKS: LME zinc stocks have already climbed about 20,000
tonnes since Oct. 5 to the highest since mid July.
MZNSTX-TOTAL
    * USD: Headwinds came from the dollar, which was supported
by a rise in Treasury yields following a report that U.S.
President Donald Trump was favouring a policy hawk as the next
head of the Federal Reserve.
    * JAPAN MANUFACTURING: Confidence among Japanese
manufacturers rebounded in October to match a peak last seen in
mid-2007, a Reuters poll found, further evidence that the
economic recovery is gathering momentum helped by a weak yen and
strong overseas demand.
    * For the top stories in metals and other news, click       
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    DATA AHEAD (GMT)
    0900  Germany           ZEW economic sentiment       Oct
    1000  Euro zone         Inflation final              Sep
    1230  U.S.              Import prices                Sep
    1230  U.S.              Export prices                Sep
    1315  U.S.              Industrial production        Sep
    1400  U.S.              NAHB housing market index    Oct    
    
    PRICES    
    
 BASE METALS PRICES            0136 GMT                
 Three month LME copper                            7123
 Most active ShFE copper                          55460
 Three month LME aluminium                         2143
 Most active ShFE                                 16400
 aluminium                               
 Three month LME zinc                              3205
 Most active ShFE zinc                            25815
 Three month LME lead                            2549.5
 Most active ShFE lead                            20295
 Three month LME nickel                           11865
 Most active ShFE nickel                          94790
 Three month LME tin                              20730
 Most active ShFE tin                            147110
                                                       
 BASE METALS ARBITRAGE                                 
 LME/SHFE COPPER            LMESHFCUc3           669.24
 LME/SHFE ALUMINIUM         LMESHFALc3           -33.16
 LME/SHFE ZINC              LMESHFZNc3           616.09
 LME/SHFE LEAD              LMESHFPBc3           -129.3
 LME/SHFE NICKEL            LMESHFNIc3          2183.45
 


($1 = 6.5885 Chinese yuan)

    
 (Reporting by James Regan and Melanie Burton; Editing by Biju
Dwarakanath)
  
 
 

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