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METALS-Copper ticks higher on trade talk optimism; other metals fall

(Adds Shanghai closing prices, updates London prices) BEIJING, Sept 24 (Reuters) - London copper prices edged higher on Tuesday after U.S. Treasury Secretary Steven Mnuchin said he would meet Chinese Vice Premier Liu He for trade talks in two weeks. Copper, considered a bellwether for economic health, has in recent months taken its directional cues from developments in the U.S.-China trade row, which has dampened the demand outlook for industrial metals. The rest of the London base complex was lower as metals remained under pressure following weak economic data from Germany, Europe's biggest economy, Malcolm Freeman, director of Kingdom Futures, said in a note. German private-sector activity shrank for the first time in 6-1/2 years in September as a manufacturing recession deepened unexpectedly. "While the longer-term view into next year for metals may be positive, it looks likely that there will be further downside pressure on prices in the short term," Freeman wrote.

FUNDAMENTALS

* COPPER: Three-month copper on the London Metal Exchange was up 0.3% at $5,794 a tonne by 0723 GMT, after closing down 0.3% on Monday, when it hit a 2-1/2-week low. The most-traded November copper contract on the Shanghai Futures Exchange closed up 0.2% at 47,120 yuan ($6,633.44) a tonne.

* DEFICIT: The global refined copper market showed a 21,000-tonne deficit in June, compared with a 70,000-tonne deficit in May, the International Copper Study Group said.

* FIRST QUANTUM: Canada's First Quantum Minerals Ltd confirmed it was in talks with China's Jiangxi Copper for a potential sale of a minority interest in its Zambian copper assets.

* CODELCO: Chile's state copper miner Codelco issued $2 billion of bonds on Monday as it seeks to smooth financing of a major overhaul of its ageing mines.

* NICKEL: The metal used to make stainless steel slipped as much as 2.1% in London despite more than 19,000 tonnes of cancelled LME warrants - metal earmarked for delivery - on Monday. "It is also worth noting that the tightness in the nickel spread ... eased from $200 to $130 on the cash to three," Freeman said <CMNI0-3>.

* STAINLESS: The ShFE will launch trading in stainless steel futures on Wednesday.

* OTHER METALS: Zinc was down 1%, aluminium slipped 0.1%, tin shed 0.2% and lead lost 0.4%.

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MARKETS NEWS

* Global shares edged up on Tuesday after U.S. Treasury Secretary Mnuchin confirmed U.S.-China trade talks would resume next month, but concerns about slowing global growth reduced the overall appetite for riskier assets.

PRICES

BASE METALS PRICES 0726 GMTThree month LME copper 5799Most active ShFE copper 47120Three month LME aluminium 1783.5Most active ShFE aluminium 14155Three month LME zinc 2308Most active ShFE zinc 18795Three month LME lead 2077.5Most active ShFE lead 16745Three month LME nickel 17465Most active ShFE nickel 138590Three month LME tin 16495Most active ShFE tin 136550

BASE METALS ARBITRAGE

LME/SHFE COPPER LMESHFCUc3 571.85LME/SHFE ALUMINIUM LMESHFALc3 -240.05LME/SHFE ZINC LMESHFZNc3 11.92LME/SHFE LEAD LMESHFPBc3 -531.43LME/SHFE NICKEL LMESHFNIc3 -4651.25

($1 = 7.1034 Chinese yuan renminbi)

(Reporting by Tom Daly; Editing by Subhranshu Sahu and Dale Hudson)