BEIJING, July 18 (Reuters) - Shanghai zinc was on course for
its first rise in seven trading days on Wednesday, moving away
from the previous session's one-year low as it tracked Tuesday's
gains in London, where zinc inventories have fallen for six
straight days.
The metal, used to galvanise steel, is still down 11.6
percent so far this month in Shanghai on concerns about
oversupply.
FUNDAMENTALS
* SHANGHAI ZINC: The most-traded September zinc contract
on the Shanghai Futures Exchange was trading up 0.6
percent at 20,370 yuan ($3,039.98) a tonne at 0157 GMT, above
Tuesday's one-year low of 20,055 yuan a tonne. It has fallen in
10 of the previous 13 trading days.
* LME ZINC: Three-month zinc on the London Metal Exchange
edged down 0.1 percent to $2,510.50 a tonne, after a
1.5-percent jump in the previous session.
* GRAPHIC: Expectations for a rise in zinc concentrate
supplies in coming years have driven down the metal price in
London to one-year lows, but smelting capacity constraints
suggest the sell-off is premature.
* OTHER METALS: LME base metals were mostly trading higher,
with nickel adding 0.6 percent and copper rising 0.2
percent. However, tin slipped 0.1 percent.
* GUINEA: The West African nation of Guinea is in talks with
Rio Tinto and Chinalco to finalise a deal on
the Simandou iron ore project, its mining minister said on
Tuesday, adding he was confident an agreement would be reached.
* CANADA: Nevsun Resources Ltd said on Tuesday that
rival Lundin Mining Corp's latest buyout proposal
undervalues the base metals miner and its assets
