METALS-Most Shanghai base metals slip on trade war jitters

By Anushree Mukherjee

March 5 (Reuters) - Most base metals in Shanghai retreated on Wednesday as investors feared a potential trade war between the United States and China, the top metals consumer, after both economies imposed tit-for-tat tariffs.

The most-active copper contract on the Shanghai Futures Exchange SCFcv1 was down 0.4% at 76,870 yuan ($10,581.74) a metric ton by 0205 GMT.

Copper prices are trending lower amid concerns over the potential risk of a global economic slowdown from U.S. trade tariffs and the retaliatory measures from the targeted trading partners of the U.S., said Kelvin Wong, OANDA's senior market analyst, Asia Pacific.

U.S. President Donald Trump's new 25% tariffs on imports from Mexico and Canada took effect on Tuesday, along with a doubling of duties on Chinese goods to 20%.

China on Tuesday swiftly retaliated against the tariffs, moving the world's top two economies a step closer towards an all-out trade war.

The National People's Congress (NPC) begins on March 5 and will close in the afternoon of March 11, the market is keen to see if the country reveals further stimulus measures, given the ongoing tariff war and concerns about slowing demand.

China kept its economic growth target for this year unchanged at roughly 5%, committing more fiscal resources than last year to fend off deflationary pressures and mitigate the impact of rising U.S. trade tariffs.

SHFE aluminium SAFcv1 fell 0.4% to 20,595 yuan a ton, zinc SZNcv1 slipped 0.9% to 23,530 yuan, nickel SNIcv1 eased 0.3% to 127,670 yuan and tin SSNcv1 lost 0.5% to 255,480 yuan. Lead SPBcv1 rose 0.2% to 17,280 yuan.

Three-month copper on the London Metal Exchange (LME) CMCU3 rose 0.3% to $9,374.5 a metric ton. LME aluminium CMAL3 was steady at $2,617 a ton, zinc CMZN3 gained 0.1% to $2,812.5, nickel CMNI3 fell 0.4% to $15,920, tin CMSN3 was unchanged at $31,580 and lead CMPB3 was steady at $2,009.

($1 = 7.2644 yuan)