Wires

METALS-Copper eases as U.S.-China trade optimism fades

Mai Nguyen

(Updates prices)

SINGAPORE, Sept 25 (Reuters) - Copper prices in London and Shanghai edged down on Wednesday as U.S. President Donald Trump's criticism of China's trade practices hurt hopes of a trade deal.

Trump said on Tuesday he would not accept a "bad deal" in the trade negotiations and that Beijing had failed to keep promises that it made when China joined the World Trade Organization.

Base metals prices, except for those of nickel, have been weighed down by slowing economic growth and weaker demand from top metals consumer China as a result of the prolonged U.S.-China trade war.

Sentiment was also curbed by China's central bank governor Yi Gang's remarks that the world's second biggest economy is in no rush to significantly loosen monetary policy to prop up slowing economic growth.

"This dashed hopes in the market that additional support for infrastructure spending would support commodity demand," said ANZ in a note.

FUNDAMENTALS

* COPPER: Three-month copper on the London Metal Exchange dipped 0.3% at $5,765.50 a tonne by 0712 GMT, while the most-traded copper contract in Shanghai eased 0.2% at 47,000 yuan ($6,605.48) a tonne.

* OTHER PRICES: London aluminum fell 0.4%, zinc eased 0.2%, nickel lost 0.5% each while lead advanced 0.9%. Shanghai aluminum fell 0.7%, nickel dropped 1.6% while zinc declined 1.2%.

* CHINA STIMULUS: China will step up efforts to stabilize growth, Ning Jizhe, a vice head of the state planner, said on Tuesday, adding that authorities will speed up construction of investment projects and relax restrictions on auto purchases.

* TRADE TALKS: U.S. Treasury Secretary Steven Mnuchin said on Monday that he and U.S. Trade Representative Robert Lighthizer would meet with Chinese Vice Premier Liu He for trade talks in two weeks.

* CHINA SCRAP: China issued a fourth batch of quotas for imports of recently restricted types of scrap metal, including another 31,658 tonnes of high-grade copper scrap, as the world's top metals consumer continues to curb inbound scrap shipments.

* CHINA STAINLESS STEEL: Chinese stainless steel futures fell by 2% in their first session of trading on Wednesday, after Trump's rebuke of China fanned demand concerns.

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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 = 7.1153 Chinese yuan renminbi) (Reporting by Mai Nguyen; Editing by Aditya Soni and Deepa Babington)