MANILA, July 11 (Reuters) - Copper and zinc prices slumped
to their weakest in about a year while other metals also sank in
a broad selloff on Wednesday after the United States raised the
stakes in a trade war with China with threats of more tariffs.
The Trump administration said it would slap 10 percent
tariffs on another $200 billion worth of Chinese imports,
raising fears the festering trade dispute between the world's
two biggest economies could hit global growth.
"There certainly is going to be pronounced risks mainly
because we've now moved on to the tit-for-tat-for-tit phase of
it," said Vishnu Varathan, head of economics and strategy at
Mizuho Bank in Singapore.
Last week, Washington imposed 25 percent tariffs on $34
billion of Chinese imports and Beijing responded immediately
with matching tariffs on the same amount of U.S. exports to
China.
"This is going to drag on until they can all come to the
table and agree to even the playing field. But the
unpredictability of the situation continues to rattle the
markets," said Varathan.
Three-month copper on the London Metal Exchange
dropped as much as 3.8 percent to $6,092.50 a tonne, its lowest
since July 25 last year. It was down 3 percent at $6,140 by 0323
GMT.
On the Shanghai Futures Exchange, the most-traded copper
fell as far as 47,800 yuan ($7,175) a tonne, its
weakest since June 23 last year.
Zinc was also hard hit, with the metal dropping by its 6
percent downside limit in Shanghai to 20,620 yuan per
tonne, the lowest since June 22 last year. It fell as much as
4.8 percent to $2,503 in London, the lowest since June
15, 2017.
* U.S. TARIFFS: U.S. officials released a list on Tuesday of
thousands of Chinese imports the Trump administration wants to
hit with the tariffs, including hundreds of food products as
well as tobacco, chemicals, coal, steel and aluminium.
* CHINA RESPONSE: China's assistant commerce minister said
on Wednesday that the latest proposed tariffs from the United
States harms the World Trade Organization system and hurts
globalization.
* MARKETS: China's shares tumbled and the dollar rose to
near an 11-month high against the yuan while the Australian
dollar dropped along with other Asian equities.
* OTHER METALS: Other metals also slid to multi-month lows
before paring some losses, with LME nickel down 3
percent and lead down 2.6 percent. In Shanghai, nickel
and lead fell more than 2 percent.
