U.S.-China trade hopes lift basemetalsprices in Shanghai

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SINGAPORE - Base metals futures in Shanghai rose on Wednesday as hopes grew for a resolution to the prolonged U.S.-China trade war after U.S. President Donald Trump said talks would resume later this month after a recent hiatus.

Prices of base metals, used vastly in industrial and manufacturing sectors, have been hit by the trade spat between the world's two biggest economies, as investors worried weaker global economic growth would hurt demand formetals.

Trump said on Tuesday he had a phone call with Chinese President Xi Jinping, adding trade talks would resume before his meeting with Xi at the G20 summit in Japan. China also confirmed the meeting of the two leaders.

"The phone call last night boosted the market. The appetite for risk can be higher and that's good for risky assets like commodities and stocks," said an analyst based in China.

The most-traded copper contract on the Shanghai Futures Exchange rose as much as 1.6% to a one-week high of 47,040 yuan ($6,813.54) a tonne, while lead hit its highest since May 27 at 16,340 yuan a tonne.

Both contracts eased slightly from session peaks as most analysts do not expect a decisive breakthrough in the talks, while investors also exercised caution ahead of the U.S. Federal Reserve's policy decision later in the day.

Aluminium rose 0.5% at 0355 GMT, nickel advanced 1.2%, zinc increased 0.4% and tin edged up 0.2%.

FUNDAMENTALS

* PRICES: Three-month copper on the London Metal Exchange edged up 0.1%, hovering around a three-week high, while other metals fell. Aluminium eased 0.4%, zinc was down 0.3% and lead declined 0.4%.

* CODELCO: Chilean miner Codelco sweetened its contract offer to workers on Tuesday in a bid to defuse rising tensions after miners striking at its giant Chuquicamata copper mine were involved in clashes with police earlier in the day.

* TIANQI LITHIUM: Tianqi Lithium Corp said on Tuesday it would strengthen inspections on its production facilities and equipment after two earthquakes struck its home province of Sichuan in southwest China.

* CHINA YUAN: China's central bank said it will sell 30 billion yuan worth of yuan-denominated bills in Hong Kong on June 26, a move that is expected to drain liquidity and support the currency ahead of the G20 summit.

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