LONDON, Jan. 11 (Reuters) – Copper prices rose on Friday as China and the United States prepared to hold further trade talks to resolve their disputes, sparking hopes of easing trade disputes between the two countries.
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U.S. officials expect China’s top trade negotiator to visit Washington this month, suggesting that the two countries may hold higher-level consultations following the middle-level official talks held in Beijing this week.
The tit-for-tat trade dispute between China and the United States has depressed the prices of basic metals, as the market expects that trade disputes will damage demand, especially from China, the largest consumer.
“A series of weak data released at the beginning of the year raised concerns about demand, but given the progress in trade negotiations, the environment for basic metals has improved,” said Jens Pedersen, commodities analyst at Dansk Bank in Denmark.
London Metal Exchange (LME) copper closed up 0.2% at $5,942 a tonne for three-month periods, expected to record its biggest one-week gain since mid-November.
The dollar rose against the euro, boosted by technical factors. The dollar fell earlier as the Federal Reserve (Federal Reserve/FED) will be patient with monetary policy.
According to policy sources, China plans to reduce its economic growth target for 2019 from 6.5% in 2018 to 6.5%. The Chinese government is prepared to deal with adverse factors such as tariffs imposed by the United States and weakening domestic demand.
Antaike, A Research Institute of the China Nonferrous Metals Industry Association, said that last year China’s refined zinc production showed its biggest drop since 2013 due to tight raw material supply, prolonged maintenance cycle and relocation of China’s largest smelter.
LME spot zinc has shrunk from three-month zinc discount to $12 per ton, the narrowest level since October 15.
Nickel was the biggest base metal, up 2% to $11,460 a tonne, hitting its highest level since November 15.
Futures aluminium fell 1.3% to $1,836 a tonne.
Zinc rose 1.3% to $2,492 per ton.
Lead rose 1.3% to $2,002 per ton.
Tin rose 0.8% to $20,300 a tonne after hitting a six-month high.
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