METALS-Copper snaps 5-day losing streak as dollar steadies

Originally, the company produced only foundry castings at the 106 East 20th Street plant, but expanded to producing machined parts in the 1920’s. A Machine Shop building was leased until 1969 when a new Machine Shop building was built at 401 West 23rd Street.

Reuters Wednesday September 05, 2018 6:48 AM

* China-U.S. trade tensions escalate as deadline looms

* Nickel hits lowest since January, zinc hits two-week low

* GRAPHIC-2018 asset returns: (Updates with official midday prices, adds comment) By Maytaal Angel LONDON, Sept 5 (Reuters) – Copper steadied on Wednesday after five straight days of losses as a dollar rally paused, but gains were firmly capped by persistent fears over escalating trade tensions between the United States and top metals consumer China. A public comment period on the possibility of fresh U.S. tariffs on another $200 billion of Chinese goods ends on Thursday, with expectations that the additional levies will be imposed by U.S. President Donald Trump. The dollar has benefited from these tensions, though it steadied on Wednesday, off a two-week high hit in the previous session, making dollar-priced metals less costly for non-U.S. investors.

“The metals complex is focusing on how trade wars damage demand and that’s why prices are largely falling, but trade wars will do more to disrupt supply chains than to hurt demand,” said Nitesh Shah, commodities strategist at ETF Securities. “The cost of bringing (metals) into the United States is rising, so that’s price positive for metals (there). Equally for China or Europe who are applying higher tariffs, they also face higher (metals) costs.”

* COPPER PRICES: Three-month copper on the London Metal Exchange was last bid up 0.9 percent at $5,865 a tonne in official midday rings, having lost 2.5 percent in the previous session.
* A London-based trader said metals had recovered thanks to
a lack of further dollar strength, little follow-through selling overnight, short covering and consumer buying after holidays. A second London-based trader said some selling pressure had been relieved after an options expiry.
* OTHER METALS: Stainless steelmaking ingredient nickel was last bid up 0.2 percent at $12,490 a tonne, having hit its lowest since January, while zinc , used to galvanise steel, traded up 0.4 percent at $2,426.50, having hit a two-week low.
* STEEL: The most active steel rebar future on the Shanghai Futures Exchange notched up its ninth day of losses out of the past 11 sessions as worries lingered about slowing demand in the world’s top producer.
* ALUMINA: Alcoa’s alumina production has likely been hit by a four-week strike at its Western Australian operations, the Australian Workers’ Union said, raising the prospect of a widening supply deficit in the key aluminium-making ingredient.
* OTHER METALS: Lead was last bid up 0.1 percent in rings at $2,078 a tonne, tin was last bid up 0.1 percent at $18,850, while aluminium was last bid up 0.7 percent at $2,076. The second London-based trader cited bearish sentiment overall in aluminium, saying the metal was being chased up because of short covering. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Top Base and Precious Metals Analysis – GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Tom Daly; Editing by David Evans and Mark Potter)

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