Shanghai metals lost ground on Monday after last week’s gains, as traders looked forward to trade talks between the United States and China – the world’s top two economies.

Shanghai Futures Exchange copper eased 0.57% to 78,880 yuan ($11,004.62) a metric ton by 0102 GMT, lead softened 0.44% to 16,835 yuan, zinc dropped 0.66% to 22,695 yuan, aluminium slipped 0.75% to 20,595 yuan, tin fell 1.26% to 267,890 yuan, and nickel declined 1.54% to 121,570 yuan.

The U.S. struck a framework trade agreement with the European Union on Sunday, imposing a 15% import tariff on most EU goods – half the threatened rate – and averting a bigger trade war between the two allies involving almost a third of global trade.

“The Chinese market is closely watching the trade talks between the U.S. and China, and any deals between the two will probably differ from Europe and Japan, and an extension of an August 12 deadline has been speculated on,” said a Beijing-based metals analyst at a futures company.

Senior U.S. and Chinese negotiators will meet in Stockholm on Monday to tackle longstanding economic disputes at the centre of a trade war between the world’s top two economies, aiming to extend a truce keeping sharply higher tariffs at bay.

Copper inventories in warehouses monitored by the SHFE (CU-STX-SGH) fell 13% week-on-week to 73,423 tons by July 25, hitting the lowest since December, which limited the price decline, according to the Beijing analyst.

Meanwhile, three-month lead on the London Metal Exchange inched up 0.12% to $2,016.5 per ton, zinc edged up 0.14% to $2,827.5, tin was up 0.2% at $34,130, and copper inched up 0.25% to $9,794, while nickel fell 0.49% to $15,245.
Source: Reuters