Copper slips on U.S. tariff threat, heads for 4.2 pct…

BEIJING, Aug 31 – London copper prices fell in early Asian trade on Friday, weighed down by reports the United States is ready to impose tariffs on $200 billion more of Chinese goods as soon as the end of next week, even as growth in China’s manufacturing sector beat expectations. London Metal Exchange copper has traded lower for three straight sessions and is on course for a monthly drop of 4.2 percent in August, after a 4.9 percent plunge in July, amid fears the trade spat will crimp demand for industrial metals. FUNDAMENTALS * COPPER: Three-month LME copper was down 0.5 percent at $6,035.50 a tonne as of 0138 GMT, extending a 0.3 percent drop in the previous session. The most-traded October copper contract on the Shanghai Futures Exchange fell 0.4 percent to 48,540 yuan ($7,100.33) a tonne. * CHINA PMI: Growth in China’s manufacturing sector unexpectedly picked up in August after sliding for two months, official data showed on Friday, a sign that economic activity is still fairly resilient despite weak investment and an escalating trade battle with the United States. * OTHER METALS: Shanghai nickel fell furthest, tumbling as much as 2 percent to a two-week low of 107,690 yuan a tonne. LME aluminium slipped 0.4 percent but is on course for its best month since April, when U.S. sanctions on Rusal were announced. * NAFTA: U.S. trade officials are pressing Mexico and possibly Canada to accept a quota plan to replace national security tariffs currently in place on imports of steel and aluminium, people briefed on the negotiations said on Thursday. * DRC: Copper output in Democratic Republic of Congo rose 7.9 percent year-on-year in the first half of 2018 to 597,249 tonnes and cobalt production jumped 37.6 percent to 52,491 tonnes, the central bank said on Thursday. * For the top stories in metals and other news, click or MARKETS NEWS * Asian shares came under renewed pressure on Friday after reports U.S. President Donald Trump was preparing to step up a trade war with Beijing and ready to impose more tariffs on Chinese imports. DATA AHEAD (GMT) 0100 China Official manufacturing PMI Aug 0100 China Official services PMI Aug 0600 Germany Retail sales Jul 0645 France Consumer prices Aug 0900 Euro zone Consumer prices Aug 0900 Euro zone Unemployment rate Jul 1345 U.S. Chicago PMI Aug PRICES BASE METALS PRICES 0140 GMT Three month LME copper 6036.5 Most active ShFE copper 48540 Three month LME aluminium 2127 Most active ShFE aluminium 14875 Three month LME zinc 2468.5 Most active ShFE zinc 21225 Three month LME lead 2085 Most active ShFE lead 18715 Three month LME nickel 13260 Most active ShFE nickel 108550 Three month LME tin 19100 Most active ShFE tin 146910 BASE METALS ARBITRAGE LME/SHFE COPPER LMESHFCUc3 697.54 LME/SHFE ALUMINIUM LMESHFALc3 -1903.08 LME/SHFE ZINC LMESHFZNc3 829.26 LME/SHFE LEAD LMESHFPBc3 1220.36 LME/SHFE NICKEL LMESHFNIc3 2588.59 ($1 = 6.8363 Chinese yuan renminbi) (Reporting by Tom Daly; editing by Richard Pullin)

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