METALS-London metals mixed as investor caution lingers amid US-China tariff truce

SHANGHAI, May 14 (Reuters) - Base metal prices in London showed varied performance on Wednesday, as investor caution persisted despite a temporary pause in the U.S.-China trade conflict, which has weighed on the global economy and financial markets.

Benchmark copper CMCU3 on the London Metal Exchange (LME) was flat at $9,598 a metric ton, as of 0157 GMT.

U.S. President Donald Trump said on Tuesday that he could see himself dealing directly with Chinese President Xi Jinping to finalize the details of a U.S.-China trade agreement.

Washington said that it will cut the "de minimis" tariff for low-value shipments from China to as low as 30%, further de-escalating a potentially damaging trade war between the world's two largest economies.

The United States and China also announced an agreement to significantly reduce reciprocal tariffs and implement a 90-day suspension of actions.

"The uncertainty surrounding trade tariffs persists, and as we await further updates, it is important to note that the truce is merely a transitional period, leaving the situation three months from now unclear," a trader said.

Among other London metals, aluminium CMAL3 rose 0.7% to $2,507 a ton, zinc CMZN3 added 0.5% to $2,719, lead CMPB3 lost 0.3% to $1,983 and nickel CMNI3 edged 0.1% higher to $15,755. Tin CMSN3 lost 0.2% to $32,660.

The most-traded copper contract on the Shanghai Futures Exchange (SHFE) rose nearly 1% to 78,610 yuan ($10,898.08) per ton, supported by falling inventories amid strong domestic demand.

Copper inventories CU-STX-SGH in warehouses tracked by the Shanghai Futures Exchange (SHFE) totaled 80,705 tons, with a slower rate of decline helping to ease supply concerns.

SHFE aluminium SAFcv1 gained 1.1% to 20,215 yuan a ton, zinc SZNcv1 added 1.3% to 22,630 yuan, lead SPBcv1 dipped 0.1% to 16,935 yuan, nickel price SNIcv1 rose 0.6% to 124,970 yuan, and tin SSNcv1 advanced 0.9% to 265,650 yuan.

($1 = 7.2132 Chinese yuan)

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