|05 September, 2019

Shanghai copper at 1-month high on U.S.-China trade talks

The most-traded copper contract on the Shanghai Futures Exchange rose as much as 2.4% to $6,665.91 a tonne, its highest since July 30

Image used for illustrative purpose. A shipment of copper is seen in the port of Valparaiso city, about 121 km (75 miles) northwest of Santiago, June 29, 2009.

Image used for illustrative purpose. A shipment of copper is seen in the port of Valparaiso city, about 121 km (75 miles) northwest of Santiago, June 29, 2009.

REUTERS/Eliseo Fernandez

SINGAPORE - Shanghai copper jumped to a more than one-month high, while London copper hit its highest in over two weeks on Thursday after China and the United States agreed to hold trade talks.

Chinese and U.S. trade teams will talk in mid-September before high-level talks next month, China's commerce ministry said, adding that both sides agreed to take actual actions to create favourable conditions.

The prolonged trade war has been weighing on demand outlook for copper, used widely in power and construction.

Three-month copper on the London Metal Exchange advanced as much as 1% to $5,802.50 a tonne, its highest since Aug. 19, before easing to trade up 0.7% at 0351 GMT.

The most-traded copper contract on the Shanghai Futures Exchange rose as much as 2.4% to 47,280 yuan ($6,665.91) a tonne, its highest since July 30.

But gains could be short-lived. U.S.-China trade talks in the past have turned directions quickly, while demand growth from top copper consumer China is seen slowing this year.

"This will happen again and again," said a copper analyst.

FUNDAMENTALS

* COPPER STOCKS: LME on-warrant copper inventories , or those available for delivery, fell to a two-month low of 209,650 tonnes.

* NICKEL SPREAD: The premium of LME nickel cash over the three month contract fell further to a three-week low of $15 a tonne, indicating a supply crunch has eased.

* NICKEL PRICES: LME nickel declined 0.9% while Shanghai nickel broke a five-session gaining streak to fall 2%.

* CHINA: China said it will implement both broad and targeted cuts in the reserve requirement ratio for banks "in a timely manner," an indication that a cut in the key ratio aimed at boosting lending could be imminent.

* COPPER: Mantos Copper said on Wednesday that it had clinched $250 million in financing to extend the life of its Mantos Blancos copper mine in northern Chile.

* OTHER PRICES: LME aluminium edged down 0.3% and zinc fell 0.3%, while lead was almost unchanged. Shanghai zinc rose 2.2%, tin advanced 2%, while lead and aluminium were nearly flat.

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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 = 7.0928 Chinese yuan renminbi) (Reporting by Mai Nguyen; editing by Uttaresh.V and Sriraj Kalluvila)

© Reuters News 2019

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