LONDON, May 3 (Reuters) – Zinc rose from five-month lows while copper also inched higher on Thursday on a weaker dollar and as the market waited for cues from China-U.S. trade talks that have started in Beijing. The world’s two biggest economies have imposed import tariffs on each other’s goods, including Chinese aluminium and U.S. aluminium scrap, and threatened more action in a trade dispute that has roiled metals markets. Benchmark zinc was up 0.5 percent to $3,061.50 per tonne, after touching its lowest since Dec. 8 at $3,044. Copper added 1.2 percent to $6,899.50. “The dollar is a little bit weaker this morning, meaning higher metal prices and that is what we see across the board in precious metals as well,” said Julius Baer analyst Carsten Menke. He added that trade talks between China and the United States could drag on for weeks and that the first round of talks would likely not yield much. TRADE: A U.S. trade delegation arrived in Beijing on Thursday for talks on tariffs, with Chinese state media saying China will stand up to U.S. bullying if needed but that it was still better to work things out at the negotiating table. DOLLAR: The dollar index fell 0.2 percent, slipping from four-month highs. A weaker U.S. currency makes dollar-denominated commodities such as zinc cheaper for non-U.S. firms, which could potentially boost demand. STOCKS: Headline inventories of zinc in LME-approved warehouses dropped by 225 tonnes to 236,775 tonnes. The amount of cancelled inventory – stock earmarked for delivery – was very low at 5.6 percent, LME data showed. TECHNICALS: Major support for zinc prices is at around $2,975-$3,000 per tonne, a level broken through in mid-Aug 2017, said Marex Spectron’s Alastair Munro. GLENCORE: The miner and trader said copper output in its first quarter rose 7 percent to 345,000 tonnes and that the ramp-up of its Katanga cobalt and copper mine in the Democratic Republic of Congo was on track. RIO TINTO: Rio Tinto’s, majority-owned aluminium smelter in New Zealand is expanding output after securing a new energy deal, the plant said this week, as a recovery in the price of the metal boosts interest among global producers. ZINC TREATMENT CHARGES: The zinc industry agreed a 15 percent drop in annual zinc processing fees to $147 per tonne, the miner and metals smelter Nyrstar said, as supply in the tight market dwindled. RUSAL: The chairman of En+ Group said on Wednesday he was working on implementing a plan that En+ hopes will lead to the United States lifting sanctions on the company, the biggest shareholder in aluminium giant Rusal.

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