November 29, 2017 / 6:42 AM / a year ago

METALS-London copper edges off one-week low, downside risks seen

 (Updates prices)
    By Melanie Burton
    MELBOURNE, Nov 29 (Reuters) - London copper edged up on
Wednesday, pulling away from its lowest in more than a week hit
in the previous session, buoyed by signs of progress on U.S. tax
cuts, but analysts said any reprieve may prove short-lived given
weaker oil prices.
    The dollar held firm on Wednesday after Wall Street shot to
record peaks amid the possible progress on tax cuts, while oil
prices fell on doubts OPEC and Russia will agree on extending a
crude production cut that the market has already priced in.

    "There's been a little bit of a selldown in the past few
days ... the (stronger) dollar, some oil-related drivers," said
analyst Daniel Morgan at UBS in Sydney.
    "In aggregate, I think the base metals have been a bit
    * LME: London Metal Exchange copper had risen 0.1
percent to $6,811 a tonne by 0751 GMT, paring earlier gains, and
after losses in the previous session when prices dipped to the
weakest since Nov. 20 at $6,797.50 and finished down 2 percent.
A trader said that arbitrage related buying was supporting the
LME copper price.
    * SHFE: Shanghai Futures Exchange copper eased 0.9
percent to 53,150 yuan  ($8,054) a tonne.
    * U.S. ECONOMY: U.S. Senate Republicans rammed forward
President Donald Trump's tax-cut bill on Tuesday in an abrupt,
partisan committee vote that set up a full vote by the Senate as
soon as Thursday, although some details of the measure remained
unsettled. [nL1N1NY0QV ]
    * COPPER: The global copper market will be balanced for the
foreseeable future even as mine supplies tighten and demand from
China, the world's top consumer, remains strong, executives from
major copper companies said on Wednesday.
    * CHINA ENVIRONMENT: China's environmental crackdown is the
"biggest uncertainty" facing the nation's copper smelters, as
the government steps up inspections and stiffens emissions
control standards, an executive from Jiangxi Copper Co Ltd
 said on Wednesday.
    * ALUMINIUM: Shanghai aluminium prices fell 1.7
percent after the Trump administration launched an aggressive
new trade action against China on Tuesday, opening the first
U.S. government-initiated anti-subsidy and anti-dumping probes
in decades into imports of Chinese aluminium alloy sheet.

    * COPPER SUPPLY: Peru, the world's No. 2 copper producer,
will likely churn out 2.5 million tonnes of the metal in 2018
and some 3 million tonnes in 2021, Vice Minister of Mining
Ricardo Labo said on Tuesday. Peru is set to produce 2.585
million tonnes of copper this year, according to Reuters data,
up from 2.28 million tonnes in 2016.
     * For the top stories in metals and other news, click      
 BASE METALS PRICES                   0750 gmt           
 Three month LME copper                            6810.5
 Most active ShFE copper                            53140
 Three month LME aluminium                           2092
 Most active ShFE aluminium                         14615
 Three month LME zinc                              3147.5
 Most active ShFE zinc                              24810
 Three month LME lead                                2432
 Most active ShFE lead                              18255
 Three month LME nickel                             11360
 Most active ShFE nickel                            91690
 Three month LME tin                                19490
 Most active ShFE tin                              142320
 BASE METALS ARBITRAGE                                   
 LME/SHFE COPPER               LMESHFCUc3          661.62
 LME/SHFE ALUMINIUM            LMESHFALc3        -1418.78
 LME/SHFE ZINC                 LMESHFZNc3          127.99
 LME/SHFE LEAD                 LMESHFPBc3        -1072.03
 LME/SHFE NICKEL               LMESHFNIc3         2459.55
($1 = 6.5993 Chinese yuan)

 (Reporting by Melanie Burton; Editing by Amrutha Gayathri and
Joseph Radford)
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