Metal & Oil & Gas News – Nctv.net
London copper retreated on Wednesday ahead of trade talks between the United States and China with U.S. President Donald Trump playing down hopes for near-term progress, saying resolving the dispute will take time.
Trump told Reuters in an interview on Monday that he had “no time frame” for ending the trade dispute with China, which threatens to impose tariffs on virtually all goods traded between the world’s two largest economies.
The talks this week come as new U.S. tariffs on $16 billion of Chinese goods are set to take effect at 12:01 a.m. (0401 GMT) on Thursday, along with retaliatory tariffs from Beijing on an equal amount of U.S. goods.
“The previously announced imposts may remind investors of the threat to economic health and also highlight the risks politicians in both the U.S. and China are willing to run,” Michael McCarthy, chief market strategist at CMC Markets and Stockbroking said in a note.
Three-month copper on the London Metal Exchange was down 0.6 percent at $6,012 a tonne by 0706 GMT. The most-traded October copper on the Shanghai Futures Exchange dropped 0.4 percent to close at 48,290 yuan ($7,025) a tonne.
* TRADE TALKS: The meetings, expected to take place on Wednesday and Thursday in Washington, are the first formal U.S.-China trade talks since June, when U.S. Commerce Secretary Wilbur Ross met Chinese economic adviser Liu He in Beijing but returned with no agreements.
* CHINA STIMULUS: China’s central bank said it will not resort to strong stimulus to support the slowing economy, but will keep liquidity reasonably ample and offer more help to companies which are having trouble obtaining financing.
* DOLLAR: Copper’s pullback came as the dollar recovered from Tuesday’s 1-1/2-week low against a basket of currencies ahead of the U.S.-China trade discussions and the release of the minutes from the Federal Reserve’s last meeting.
* SAMARCO DELAY: There is little likelihood that Brazil’s Samarco iron ore mine, a joint venture between Vale SA and BHP Billiton, will restart operations next year even though it expects to have all of the required licenses.
* OTHER METALS: LME aluminium rose 0.9 percent to $2,073 a tonne and zinc gained 0.2 percent to $2,430.50. In Shanghai, zinc closed up 0.7 percent at 20,355 yuan per tonne and aluminium added 0.1 percent to 14,655 yuan.
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
Source: Reuters
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