Industrial metals on the London Metal Exchange fell on Wednesday as U.S.-China trade tensions resurfaced, raising concerns over economic growth and demand.
U.S. President Donald Trump threatened to place “major tariffs” on Chinese goods imported into the United States if his administration is unable to reach an effective trade deal with Beijing.
But China said Beijing and Washington will push forward with trade negotiations in the next 90 days and it is confident that an agreement can be implemented.
FUNDAMENTALS
* Three-month copper on the London Metal Exchange fell 0.3 percent to $6,189 a tonne by 0121 GMT, while the most-active contract on the Shanghai Futures Exchange lost 1.4 percent to 49,250 yuan ($7,206.30) a tonne.
* London aluminium fell 0.2 percent to $1,971 a tonne, while nickel eased 0.1 percent and zinc was 0.4 percent lower.
* TRADE: U.S. President Donald Trump on Tuesday held out the possibility of an extension of the 90-day trade truce with China but warned he would revert to tariffs if the two sides could not resolve their differences.
* U.S. DOLLAR: The greenback edged up on Wednesday, putting further pressure on London metals which are traded in dollars, as the commodities became more expensive for countries using other currencies.
* Nickel: Brazilian miner Vale SA, the world’s top nickel producer, plans to invest $500 million in its struggling New Caledonia nickel mine on its own after previously vowing to find a partner for the venture, reflecting its new understanding of the importance of an expected surge in electric vehicle sales.
