METALS-Metals rise after US and China agree to slash reciprocal tariffs

SHANGHAI, May 12 (Reuters) - Base metals prices rose on Monday, after the U.S. and China agreed to slash reciprocal tariffs that eased global recession fears.

Benchmark copper CMCU3 on the London Metal Exchange (LME) rose 1.0% to $9,542 a metric ton, as of 0724 GMT.

The United States and China said on Monday they have agreed a deal to slash reciprocal tariffs as Washington and Beijing seek to end a trade war that has disrupted the global economy and set financial markets on edge.

Speaking after talks with Chinese officials in Geneva, U.S. Treasury Secretary Scott Bessent told reporters the two sides had reached a deal for a 90-day pause on measures and that reciprocal tariffs would drop by 115%.

"The positive outcome has given investors confidence that a full-scale trade war might have been avoided," a trader said.

Among other London metals, aluminium CMAL3 rose 1.7% to $2,459 a ton, zinc CMZN3 added 1.5% to $2,693, lead CMPB3 gained 0.8% to $1,997 and nickel CMNI3 rose 0.2% to $15,840. Tin CMSN3 climbed 1.5% to $32,360.

The most-traded copper contract on the Shanghai Futures Exchange (SHFE) gained 0.8% to 78,260 yuan ($10,854.37)per ton.

Nickel price SNIcv1 on the SHFE outperformed, rising 2.0% to 126,130 yuan, driven by speculations that the Philippines is planning to implement a nickel ore export ban from next month.

However, the Shanghai Metals Market noted that the Philippines' proposed policy was still under review and would be discussed further when Congress reconvenes in June.

The news is expected to struggle to impact the nickel industry's fundamentals in the short term, it said.

SHFE aluminium SAFcv1 gained 1.7% to 19,910 yuan a ton, zinc SZNcv1 added 1.1% to 22,490 yuan, lead SPBcv1 rose 1.2% to 16,995 yuan, and tin SSNcv1 advanced 0.9% to 263,200 yuan.

($1 = 7.2100 Chinese yuan renminbi)

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