METALS-London base metals rise as US-China trade truce eases uncertainty

SHANGHAI, May 14 (Reuters) - Prices of most base metals in London climbed on Wednesday, as traders welcomed a 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 at $9,626 a metric ton, as of 0708 GMT, up 0.2% from the previous close. The contract also surpassed Tuesday's session high of $9,614, its strongest level since April 3.

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

The two countries had agreed to reduce reciprocal tariffs and implement a 90-day suspension of actions, while Washington said it would cut the "de minimis" tariff for low-value shipments from China to as low as 30%.

"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 1.2% to $2,519 a ton, zinc CMZN3 added 1.4% to $2,745, lead CMPB3 lost 0.6% to $1,977 and nickel CMNI3 edged 0.5% higher to $15,810. Tin CMSN3 was flat at $32,735.

The most-traded copper contract on the Shanghai Futures Exchange (SHFE) rose 1.4% to 78,940 yuan ($10,941.85)per ton, supported by falling inventories amid strong domestic demand.

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

SHFE aluminium SAFcv1 gained 1.4% to 20,275 yuan a ton, zinc SZNcv1 added 1.7% to 22,710 yuan, lead SPBcv1 dipped 0.1% to 16,935 yuan, nickel price SNIcv1 rose 0.8% to 125,230 yuan, and tin SSNcv1 advanced 0.9% to 265,770 yuan.

($1 = 7.2145 Chinese yuan)

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