August 20, 2018 / 5:03 AM / a month ago

METALS-London copper up on hopes of U.S. China trade progress

(Adds comment, details, updates prices)

By Melanie Burton

MELBOURNE, Aug 20 (Reuters) - London copper climbed on Monday as hopes of progress in a trade dispute between the United States and China buoyed risk appetite and undermined safe-haven demand for the dollar.

The dollar sagged as investor demand receded, with the focus on discussions between the world’s top two economies due this week.

“With a relatively quiet week for data, prices are likely to remain sensitive to any volatility in emerging markets,” said ANZ in a report.

FUNDAMENTALS

* COPPER: London Metal Exchange rose by 0.7 percent to $5,969 a tonne by 0438 GMT, having closed on Friday down by 0.2 percent. Shanghai Futures Exchange copper rose by 0.4 percent to 48,060 yuan ($6,991) a tonne, with prices of both metals fading after an early short-covering burst.

* A weaker dollar boosts demand for dollar-priced commodities by making them cheaper for buyers paying with other currencies.

* Reports suggested that China and Washington would hold lower level trade talks on Aug. 21 and 22, just before $16 billion in new U.S. tariffs on Chinese goods take effect.

* COPPER: Chile’s Antofagasta, one of the world’s leading copper producers, expects copper prices to continue to be volatile due to global trade tensions, the head of the company was quoted in a local newspaper as saying on Sunday.

* COPPER: The union representing workers of Chilean copper mine Escondida signed a new collective labor contract on Friday, ending the risk of a strike that could have paralysed the world’s biggest copper mine, easing supply concerns.

* BATTERIES: China’s largest lithium battery maker Contemporary Amperex Technology Ltd plans to begin producing in 2019 next-generation nickel-rich batteries, which are cheaper to make, have longer life spans, and cut the need for cobalt, according to an internal company presentation and a company source.

* INVESTORS: Hedge funds and money managers trimmed their net short position in copper futures and options, data from the U.S. commodity regulator showed on Friday.

* OTHER METALS: Other metals also edged back from strong gains. LME lead was up 1.2 percent at $2,010 a tonne, having risen nearly 2 percent earlier, while LME zinc slipped 0.4 percent after an early 1.5 percent gain. LME nickel also pared gains, but held a 0.7 percent advance.

* COMING UP: Germany Producer prices July at 0600 GMT

* For the top stories in metals and other news, click or

PRICES

Three month LME copper

Most active ShFE copper

Three month LME aluminium

Most active ShFE aluminium

Three month LME zinc

Most active ShFE zinc

Three month LME lead

Most active ShFE lead

Three month LME nickel

Most active ShFE nickel

Three month LME tin

Most active ShFE tin

ARBS ($1 = 6.8740 Chinese yuan) ($1 = 6.8740 Chinese yuan renminbi)

Reporting by Melanie Burton; Editing by Sunil Nair and Richard Pullin

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