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METALS-Shanghai copper slumps to 2-year low amid demand worries

Mai Nguyen

(Adds details, updates prices)

SINGAPORE, June 6 (Reuters) - Shanghai copper plunged to a two-year low on Thursday, tracking weakness in London's overnight session, due to mounting concerns about slowing global growth and weak metals demand amid rising trade tensions.

The most-traded copper contract on the Shanghai Futures Exchange fell as much as 1.3% to 45,860 yuan ($6,635.13) a tonne, its lowest since June 2017, and was down 1% at 0508 GMT.

The benchmark London copper contract was almost unchanged at $5,806.50 a tonne, struggling to break through a five-month low hit in the previous session as worries over global slowdown lingered.

"While we see some dynamics supporting a copper price recovery, short-term bearish sentiment should continue to affect copper prices," said analyst Helen Lau of Argonaut Securities.

FUNDAMENTALS

* IMF: The International Monetary Fund on Wednesday cut its China growth forecast for 2019 to 6.2% from 6.3% and warned that tariffs could reduce 2020 global gross domestic product by 0.5%, or about $455 billion, but it does not see a recession.

* U.S.-MEXICO: U.S. President Donald Trump said on Wednesday "not enough" progress was made to curb migration from Mexico, ahead of a resumed talks between officials from the two sides aimed at averting an imposition of tariffs on Mexican goods.

* RARE EARTHS: The U.S. Department of Defence has held talks with Malawi's Mkango Resources Ltd and other rare earth miners about their supplies, part of a plan to find reserves outside of China, a department official said on Wednesday.

* PANAMA COPPER: Canada's First Quantum Minerals said it had "fully complied" with local rules in operating Cobre Panama, one of the region's largest copper mines, as Panama's president-elect said he to review the company's contract.

* LEAD SPREAD: The premium for cash lead over the three-month contract <CMPB0-3> on Wednesday jumped to $39 a tonne, its highest since January 2017, indicating tight nearby supplies, as LME inventories fell to their lowest in nearly four months. <MPBSTX-TOTAL>

* PRICES: London lead rose 0.1%, hovering around a one-month high, while zinc gained 0.7% and aluminum eased 0.1%.

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PRICES

Three month LME copper

Most active ShFE copper

Three month LME aluminum

Most active ShFE aluminum

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

ARBS ($1 = 6.9117 Chinese yuan)

(Reporting by Mai Nguyen; editing by Gopakumar Warrier and Subhranshu Sahu)