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MANILA, May 9 (Reuters) - Shanghai industrial metals fell in early trade on Thursday, while benchmark London copper hit its lowest in nearly three months, as investors sought safety ahead of crucial trade talks between the United States and China.
The two sides will hold two-day negotiations in Washington from Thursday, with U.S. President Donald Trump's threat to increase tariffs on $200 billion worth of Chinese goods on Friday raising the risk of an escalation in the trade spat.
The bruising trade war, which has slowed the global economy, has clouded the outlook for demand from top metals consumer China.
Ahead of the talks, Trump said Beijing "broke the deal" in negotiations with Washington and would face stiff tariffs if no agreement was reached.
Benchmark copper on the London Metal Exchange was down 0.1 percent at $6,142.5 a tonne by 0126 GMT, after touching its lowest since Feb. 15 at $6,114.50.
* The most-traded copper contract on the Shanghai Futures Exchange fell as much as 0.7 percent to 47,560 yuan ($7,012.89) a tonne.
* ShFE zinc dropped as much as 1.8 percent to 20,995 yuan a tonne.
* IRAN: Trump on Wednesday imposed new sanctions on Iran, targeting revenue from its exports of industrial metals, the latest salvo in tensions between Washington and Tehran over a 2015 international accord curbing the Islamic Republic's nuclear program.
* GRAPHIC: The world's biggest diversified miners have yet to see their share prices reflect their role as providers of the minerals needed for a shift to a low-carbon economy.
* For the top stories in metals and other news, click or
* Asian shares hit six-week lows in early trade on Thursday as increased tensions ahead of key Sino-U.S. trade negotiations fanned fresh concerns about the outlook for the global economy.
0130 China PPI YY April
0130 China CPI YY April
1200 Brazil Retail Sales YY March
1230 US International Trade March
1230 US Initial Jobless Claims Weekly
1230 France Reserve Assets Total April
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Most active ShFE nickel
Three month LME tin
Most active ShFE tin
($1 = 6.7818 Chinese yuan)
(Reporting by Enrico dela Cruz; Editing by Shreejay Sinha)