March 27, 2019 / 1:54 AM / a month ago

METALS-Shanghai zinc hits 1-year high; tight stocks, trade talks in focus

    BEIJING, March 27 (Reuters) - Most base metals moved higher
in early Asian trade on Wednesday, with Shanghai zinc touching a
more than one-year high, as investors focused on tight inventory
levels and the resumption of U.S.-China trade talks in Beijing
this week.
    The United States Trade Representative Robert Lighthizer and
Treasury Secretary Steven Mnuchin are expected to arrive in
Beijing later on Wednesday for talks starting on Thursday.

    
    FUNDAMENTALS
    * SHANGHAI ZINC: The most traded May zinc contract on the
Shanghai Futures Exchange rose as much as 2.1 percent
to 22,450 yuan ($3,344.46) a tonne, its highest since March 7,
2018, and stood at 22,385 yuan a tonne as of 0137 GMT. 
    * LME ZINC: Three-month zinc in London edged down
0.1 percent to $2,870.50 a tonne after jumping 1.5 percent in
the previous session. 
    * ZINC STOCKS: Zinc inventories in LME warehouses
MZN-STOCKS fell by another 650 tonnes on Tuesday to 56,425
tonnes, the lowest since February 1991. 
    * SPREADS: The premium of cash LME zinc over the three-month
contract CMZN0-3 stood at $47 a tonne on Tuesday, up $10.50
from Monday, indicating tighter near-term supply.
    * OTHER METALS: Nickel, used to make stainless steel, added
1.9 percent in Shanghai to 101,40 yuan a tonne, while
Shanghai copper nudged up 0.5 percent to 48,490 yuan a
tonne. In London, copper also rose 0.5 percent to $6,361
while aluminium added 0.9 percent to $1,905.
    * COPPER: Polish miner KGHM and a union
representing workers at its Sierra Gorda copper mine in Chile
have agreed to extend contract talks, temporarily warding off
the threat of a strike, the union president said.    
    * ALUNORTE:  Norsk Hydro has agreed with Brazil's
federal prosecutor to have a third-party technical assessment
that, if positive, could lead to it resuming full production at
the half-shut Alunorte alumina refinery, the company said on
Tuesday.
    * For the top stories in metals and other news, click    
 or     
        
    MARKETS NEWS    
    * Asian shares slipped, giving up their small gains made the
previous day, as investors tried to come to terms with a sharp
shift in U.S. bond markets and the implications for the world's
top economy.    
        
    DATA/EVENT AHEAD (GMT)
    0745   France   Consumer Confidence    March
    0745   France   Producer Prices MM     Feb
    1230   US       International Trade    Jan
    1230   Canada   Trade Balance          Jan
    1500   US       Current Account        Q4
    1600   US       Federal Reserve issues annual benchmark 
    revisions to its U.S industrial production and capacity use
    data from 1972 through March 2019
        
    PRICES        
 BASE METALS PRICES                       0135 GMT
 Three month LME copper                     6357.5
 Most active ShFE copper                     48470
 Three month LME aluminium                    1904
 Most active ShFE aluminium                  13645
 Three month LME zinc                         2870
 Most active ShFE zinc                       22370
 Three month LME lead                       2002.5
 Most active ShFE lead                       16810
 Three month LME nickel                      13125
 Most active ShFE nickel                    101420
 Three month LME tin                             0
 Most active ShFE tin                       146580
                                                  
 BASE METALS ARBITRAGE                            
 LME/SHFE COPPER              LMESHFCUc3   -980.96
 LME/SHFE ALUMINIUM           LMESHFALc3  -1135.91
                                          
 LME/SHFE ZINC                LMESHFZNc3   -559.78
 LME/SHFE LEAD                LMESHFPBc3    738.61
 LME/SHFE NICKEL              LMESHFNIc3  -3064.39
                                          
 ($1 = 6.7126 Chinese yuan renminbi)

    
 (Reporting by Tom Daly; Editing by Rashmi Aich)
  
 
 
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