Copper touches two-week high on hopes of trade deal

LONDON — Copper rose to its highest in more than two weeks on Friday as investors hoped that US-Sino trade talks would result in a partial deal at least.

Zinc climbed to its strongest in more than two months on worries about shortages after a shutdown of a production facility in Namibia.

US President Donald Trump said on Friday “good things” were happening in the first trade talks in more than two months, while a Chinese state newspaper said a “partial” trade deal would benefit China and the US.

“Until we get a definitive outcome, metals prices will drift, but I would expect to see quite a positive response (to any good news). A lot of bad news is priced into the market,” said Caroline Bain, chief commodities economist at Capital Economics in London.

The 15-month trade dispute between the US and China has slowed global growth and dimmed the demand outlook for base metals.

US President Donald Trump said his plans to meet China’s Vice Premier Liu He at the White House on Friday was a good sign.

Three-month copper on the London Metal Exchange (LME) added 0.2% to $5,795 a ton in final open-outcry trading after touching its highest since Sept. 24 at $5,814. It had risen 1.7% in the previous session, its strongest advance in nearly four weeks.

ZINC: LME zinc failed to trade in closing rings but was bid up 1.3% at $2,418 a ton, the highest since Aug. 1. It surged more than 4% in the previous session after news of a production shutdown.

MINE CLOSURE: Vedanta Resources said on Thursday it would shut its Skorpion zinc operations in Namibia from early November until the end of February 2020 because of technical problems.

ZINC STOCKS: LME zinc stocks last stood at 62,475 tons, having dropped by more than half since the start of 2019. Stocks touched a record low of 50,425 tons in April.

ALUMINUM STOCKS: LME on-warrant aluminum inventories, those not earmarked for delivery, rose to 797,650 tons, the highest since May 15.

LME aluminum slid 1.8% to close at $1,722 a ton.

“We see little upside for aluminum. Even though production is quite weak, there’s still more than enough aluminum around to meet demand,” Ms. Bain said.

Capital Economics expects aluminum to end the year at $1,650.

PRICES: LME nickel shed 0.4% to finish at $17,560 a ton; lead climbed 1.1% to $2,182; and tin added 0.5% to $16,525. —