|12 June, 2019

Copper extends gains on China stimulus hopes

Three-month copper on the London Metal Exchange was up 0.2% at $5,888 a tonne

Copper components used for plumbing are seen on sale at the Surtidora Ferretera River Store in Mexico City, Mexico October 24, 2017. Image used for illustrative purpose.

Copper components used for plumbing are seen on sale at the Surtidora Ferretera River Store in Mexico City, Mexico October 24, 2017. Image used for illustrative purpose.

REUTERS/Henry Romero/File Photo

SINGAPORE  - Copper prices climbed on Wednesday on hopes that top consumer China would increase spending for metal-intensive infrastructure projects, but gains were curbed due to a festering trade war between Beijing and Washington.

China will allow local governments to use proceeds from special bonds as capital for investment projects to support the economy, while U.S. President Donald Trump said he was holding up a trade deal with China until Beijing agrees to his points.  

FUNDAMENTALS

* Three-month copper on the London Metal Exchange was up 0.2% at $5,888 a tonne, as of 0241 GMT, while the most-traded copper contract on the Shanghai Futures Exchange eased 0.1% to 46,630 yuan ($6,742.92) a tonne.

* The United States will team up with Canada and Australia to help countries around the world develop their reserves of minerals such as lithium, copper and cobalt, as part of a multi-pronged strategy to reduce global reliance on China. 

* China launched a survey of rare earth resources in seven regions on Monday, the China Securities Journal reported on Tuesday, amid speculation Beijing may curb exports of the materials to the United States. 

* Chilean Mining Minister Baldo Prokurica said on Tuesday the government of the South American mining powerhouse would favour neither private nor state investment as it seeks to ratchet up output of its world-leading reserves of lithium.

MARKETS NEWS

* Asian share markets were in a wary mood on Wednesday as the White House took a tough line on trade talks with China, while a looming reading on U.S. inflation could shuffle the odds for an early cut in interest rates there.  

($1 = 6.9154 Chinese yuan)

(Reporting by Mai Nguyen, Editing by Sherry Jacob-Phillips) ((mai.nguyen@thomsonreuters.com; +6568703435; Reuters Messaging: mai.nguyen.thomsonreuters.com@reuters.net))

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