March 6, 2018 / 2:25 AM / in a year

METALS-Shanghai zinc falls sharply after LME inventory surge

    BEIJING, March 6 (Reuters) - Shanghai zinc prices fell to
their lowest since December on Tuesday, tracking a decline on
the London Metal Exchange (LME) after LME warehouse inventories
rose and on-warrant zinc stocks - those not earmarked for
delivery - nearly doubled.
    The metal, used to galvanise steel, is also coming under
pressure from looming U.S. tariffs on steel imports.  
    * SHFE ZINC: The most traded April zinc contract on
the Shanghai Futures Exchange was down 2.5 percent at 25,335
yuan ($3,998.07) a tonne at 0206 GMT, on course for its biggest
daily drop since October. It earlier touched 25,210 yuan a
tonne, its lowest since Dec. 15.
    * LME ZINC: Zinc in London was up 0.1 percent at $3,298.50 a
tonne after hitting a 2018 low in the previous session.
 Stocks of zinc in LME warehouses MZN-STOCKS
jumped by 59 percent on Monday to 209,050 tonnes, while
on-warrant levels nearly doubled to 162,825 tonnes.    
    * LME COPPER: Three-month copper on the London Metal
Exchange was up 0.4 percent ar $6,936 on a weaker
dollar, extending a 0.2 percent gain in the previous session. A
weaker greenback makes metals cheaper for holders of other
currencies and can support prices
    * SHFE COPPER: The most-traded April copper contract on the
Shanghai Futures Exchange edged up 0.1 percent to
52,180 yuan a tonne.
    * TRUMP: U.S. President Donald Trump faced growing pressure
on Monday from political and diplomatic allies as well as U.S.
companies urging him to pull back from proposed steel and
aluminum tariffs, although he said he would stick to his guns.

    * INDONESIA: Indonesia's President Joko Widodo has
instructed his administration to complete negotiations over the
purchase of a majority stake in Freeport-McMoRan Inc's
local unit by the end of April, a cabinet minister said on
    * COBALT: Australia's Celsius Resources, which has
made Namibia's first cobalt discovery, is aiming to start
production from the remote mine in 2020, the company's managing
director said.
    * For the top stories in metals and other news, click       
    * Asian shares regained some ground on Tuesday after U.S.
President Donald Trump faced growing pressure from political
allies to pull back from proposed steel and aluminium tariffs,
easing investor worries about an imminent trade war.

 BASE METALS PRICES                        0206 GMT
 Three month LME copper                        6936
 Most active ShFE copper                      52180
 Three month LME aluminium                   2143.5
 Most active ShFE aluminium                   14355
 Three month LME zinc                        3297.5
 Most active ShFE zinc                        25335
 Three month LME lead                          2415
 Most active ShFE lead                        18510
 Three month LME nickel                       13465
 Most active ShFE nickel                     102290
 Three month LME tin                          21540
 Most active ShFE tin                        147070
 BASE METALS ARBITRAGE                             
 LME/SHFE COPPER              LMESHFCUc3    1166.41
 LME/SHFE ALUMINIUM           LMESHFALc3   -1416.07
 LME/SHFE ZINC                LMESHFZNc3     584.09
 LME/SHFE LEAD                LMESHFPBc3      38.59
 LME/SHFE NICKEL              LMESHFNIc3    1710.92

($1 = 6.3368 Chinese yuan renminbi)

 (Reporting by Tom Daly; editing by Richard Pullin)
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