Base metals rally on hopes US-China trade dispute could thaw
LONDON: LME copper and zinc hit one-month highs on Friday as base metals rallied on signs the trade dispute between the United States and top metals consumer China could be easing.
The Wall Street Journal reported on Thursday that US Treasury Secretary Steven Mnuchin discussed lifting some or all tariffs imposed on Chinese imports.
The Treasury later denied the talks, but the report has continued to lift global markets including metals.
"Macro headlines are moving copper. The fundamentals don't give you anything meaningful in terms of a price trend. The market is not so tight that it forces prices higher, and its not oversupplied either," said Macquarie analyst Vivienne Lloyd.
"Copper will remain range-bound until it finds a big macro trigger, and we lean towards an upside move."
* COPPER: Three-month copper on the London Metal Exchange was 1.2 percent higher at $6,062.50 a tonne by 1019 GMT, having hit its highest since the middle of December. The metal is on course for its biggest weekly gain in nine.
* COPPER TECHNICALS: Copper is nearing a break of its 50-day moving average.
* RIO TINTO: Global miner Rio Tinto said mined copper production in the fourth quarter beat its guidance at 633,500 tonnes.
* ZINC: Zinc traded up 1.4 percent at $2,582, having hit its highest since mid-December. The metal is on course for its biggest weekly gain since the week ended Sept 28.
* ZINC STOCKS: "The increase in zinc ingot stocks at home and abroad is less than expected, supporting prices," Chinese brokerage Industrial Futures said in a note.
* ZINC TECHNICALS: Zinc on Thursday broke above its 50 and 100-day moving averages.
* TIN POSITIONS: Indicating supply tightness in tin, LME data shows large holdings of tin warrants and cash contracts.
* RUSAL: The US House of Representatives backed legislation to keep sanctions on companies including Rusal, the world's largest aluminium producer outside China, but the Trump administration is expected to lift them as soon as Friday.
* GLOBAL MARKETS: Global stocks rose to their highest in more than a month, buoyed by US-China trade hopes, while the dollar was set for its first weekly rise in five on rate gap bets.