February 5, 2018 / 1:50 AM / 6 months ago

METALS-London copper steadies, shielded by softer dollar

    MELBOURNE, Feb 5 (Reuters) - London copper steadied on
Monday but looked fragile as risk-off selling swept through
Asia's stock markets, threatening to pressure metals that had
found near-term support in a softer dollar. 
    
    FUNDAMENTALS
    * COPPER: London Metal Exchange copper held up by a
meagre 0.2 percent amid a flat to lower complex, trading at
$7,059 a tonne by 0127 GMT. Prices dropped 1 percent on Friday
when they hit the highest in a week at $7,188.50 before falling
into the close. 
    On the Shanghai Futures Exchange where prices have trended
lower since late December, copper stayed down by 0.5
percent at 52,950 yuan ($8,407) a tonne.
    * U.S. job growth surged in January and wages increased
further, recording their largest annual gain in more than 8-1/2
years, bolstering expectations that inflation will push higher
this year as the labour market hits full employment.
    * PERU PRODUCTION: Higher supply overhung the market after
Peru, the world's No. 2 copper, zinc and silver producer,
reported a substantial rise in production of its main base
metals in 2017. Copper production grew 3.9 percent to 2.4
million tonnes, while zinc production surged by 10.2 percent to
1.5 million tonnes.
    * NICKEL: LME nickel slipped by 0.3 percent, adding
to Friday's 4 percent plunge that was fanned by expectations of
growing nickel ore exports from Indonesia.
    * LEAD: Lead prices took a breather from a
6-1/2-year top of $2,685 from Friday to tail back by 0.7
percent. 
    * ALUMINIUM: Russian aluminium maker Rusal said on
Monday that China's winter capacity cuts will result in an
annualised production loss of 1 million tonnes of aluminium as
it forecast that China's aluminium demand surged by 7.8 percent
to 34.9 million tonnes.
    * CHINA LOGISTICS: China's worst blizzard this winter
exposed a flaw in Beijing's drive to create remote coal mining
hubs as it tries to streamline heavy industries and clear the
air in populated regions: a lack of railroads to get the fuel to
market.
    * INVESTORS: Hedge funds and money managers cut their net
long position in COMEX copper futures and options in the week to
Jan. 30, U.S. Commodity Futures Trading Commission (CFTC) data
showed.
        
    MARKETS NEWS    
    * Asian share markets stumbled on Monday as fears of
resurgent inflation battered bonds, toppled Wall Street from
record highs and sparked speculation central banks globally
might be forced to tighten more aggressively.    
        
    
    DATA AHEAD (GMT)
    0145  China  Caixin services PMI Jan
    0850  France Markit services PMI Jan
    0855  Germany Markit services PMI Jan
    0900  Euro zone Markit services PMI final Jan
    0930  Euro zone Sentix index Feb
    1000  Euro zone Retail sales Dec
    1500  U.S. ISM non-manufacturing PMI Jan    
    PRICES    
    
 BASE METALS PRICES                      0126 GMT           
 Three month LME copper                                 7054
 Most active ShFE copper                               52880
 Three month LME aluminium                            2201.5
 Most active ShFE aluminium                            14325
 Three month LME zinc                                   3495
 Most active ShFE zinc                                 26650
 Three month LME lead                                 2661.5
 Most active ShFE lead                                 19615
 Three month LME nickel                                13345
 Most active ShFE nickel                              101070
 Three month LME tin                                   21555
 Most active ShFE tin                                 148610
                                                            
 BASE METALS ARBITRAGE                                      
 LME/SHFE COPPER                 LMESHFCUc3          1163.54
 LME/SHFE ALUMINIUM              LMESHFALc3         -1725.79
 LME/SHFE ZINC                   LMESHFZNc3           504.76
 LME/SHFE LEAD                   LMESHFPBc3          -616.95
 LME/SHFE NICKEL                 LMESHFNIc3          1802.86
 

($1 = 6.2984 Chinese yuan)

    
 (Reporting by Melanie Burton; Editing by Subhranshu Sahu)
  
 
 
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