BEIJING: London copper prices fell for a third straight session on Tuesday as concerns that global trade ructions would cool economic growth were compounded by signs of rising supply, but low inventory levels limited losses.
Growth concerns have been weighing on the industrial metals sector, including copper, ANZ analysts wrote in a note, adding that prices had been knocked by news that Vedanta Ltd was closer to being allowed to restart its 400,000 tonnes per year copper smelter in India.
"The market is focused on an upcoming economic policy meeting in China, with expectations of further stimulus to domestic growth," the bank added, referring to the Central Economic Work Conference taking place in Beijing.
China's refined copper output rose by 7.6 percent year-on- year to 768,000 tonnes in November, its highest level since June, according to the National Bureau of Statistics.
FUNDAMENTALS
* LME COPPER: Three-month copper on the London Metal Exchange slipped by 0.3 percent to $6,103.50 a tonne as of 0709 GMT. The most-traded February contract on the Shanghai Futures Exchange fell for a fourth day, closing down 0.4 percent at 48,930 yuan ($7,100.36) a tonne.
* XI SPEECH: Chinese President Xi Jinping called on Tuesday for the unswerving implementation of reforms on Beijing's terms but offered no new specific measures in a closely watched speech marking 40 years of market liberalisation.
* TRADE: The United States has welcomed Chinese concessions since the two declared a trade war truce in early December, but trade experts and people familiar with negotiations say Beijing needs to do far more to meet U.S. demands for long-term change in how China does business.
* COPPER STOCKS: Offering price support to copper, stocks <MCUSTX-TOTAL> on the LME stand at 121,800 tonnes, having last week dipped below 120,000 to the least in more than a decade.
* ZINC: The metal used to galvanise steel was the only gainer in the London base complex amid thin pre-holiday trade, adding 0.8 percent to $2,560 a tonne. The premium for cash LME zinc over the three-month price <CMZN0-3> bounced back to $50.50 a tonne on Monday after hitting a two-month low of $26 a tonne on Friday, indicating tightening supply.
* NICKEL: The global nickel market deficit widened to 19,600 tonnes in October from the previous month's revised deficit of 9,000 tonnes, the International Nickel Study Group (INSG) said.
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MARKETS NEWS
* Asian share markets sank on Tuesday as heightened worries about a slowing global economy sent Wall Street stocks skidding to their lowest levels in more than a year.
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