Base metals tread water on mixed China weak retail data

LONDON — Base metals held steady on Wednesday as weak retail sales data from top consumer China took the shine off upbeat industrial output and investment figures in the country.

Benchmark copper on the London Metal Exchange (LME) ended 0.3% higher at $6,090 a ton. The metal used in power and construction was marginally lower in early trade.

Retail sales in China in October grew at their slowest pace since May, pointing to a consumption slowdown, even as a pickup in industrial output and investment suggested support measures may be starting to take hold.

Meanwhile, a decline in oil prices late on Tuesday hit metals and other assets such as equities which are seen as risky, Commerzbank analyst Daniel Briesemann said.

ENERGY: Oil prices clawed back some losses on Wednesday after tanking around 7% in the previous session as investors were scared off by surging supply and the specter of faltering demand.

US-CHINA TRADE: US President Donald Trump’s top economic adviser said “it’s pretty clear now” that Mr. Trump would meet with Chinese President Xi Jinping at the G20 summit later this month a day after China’s top trade negotiator Liu He said he could visit Washington to prepare for the talks.

CHINESE INVESTMENT: Chinese copper smelters are looking to make more investments in mines, pushing to shore up supply of concentrate at a time when competition for the raw material is heating up, industry executives said.

CHINA ALUMINUM: China’s primary aluminum output fell for a third straight month in October, as low aluminum prices prompted smelters to cut production even before government-mandated winter restrictions kick in.

LME aluminum ended up 0.4% to $1,943 per ton, after touching a 15-month low on Tuesday.

CHINA STEEL: Steel output in China, the world’s top producer, hit record levels in October, rising for a third straight month as mills rushed to boost output ahead of winter production cuts.

LEAD AND ZINC: The global lead market’s deficit ballooned to 21,400 tons in September while zinc narrowed its deficit to 54,700 tons.

SPREAD: The premium for cash zinc over the three-month contract was at $56.50 a ton, close to a one-year high of $66.50 touched on Monday as concerns lingered over tight supplies on the LME.

PRICES: Zinc inched 0.5% higher at $2,502 per ton; lead edged up 0.1% to $1,953; tin added 0.2% to $19,305; while nickel touched a fresh 11-month low, finished 0.3% lower at $11,315. —