METALS-London metals decline as caution lingers over US-China tariff truce

SHANGHAI, May 15 (Reuters) - Prices of most base metals in London edged lower on Thursday as the temporary U.S.-China tariff truce prompted caution, with concerns about a potential global recession affecting metals demand.

Benchmark copper CMCU3 on the London Metal Exchange (LME) fell 1% from Wednesday's close to $9,509 a metric ton at 0704 GMT. That was 1.6% lower than last session's peak of $9,664, the highest since April 2.

On Wednesday, China paused some non-tariff measures taken in April against several U.S. entities - 17 on its unreliable entity list and 28 on its export control list, the commerce ministry said.

The two countries have agreed to reduce the tit-for-tat tariffs and implement a 90-day pause on actions, while Washington said it would cut the "de minimis" tariff for low-value shipments from China to 30%.

"The trade tariff conflict is moving in a positive direction, alleviating concerns about a global recession," a trader said.

"However, trade negotiations are complex and lengthy... We might experience a situation similar to April, when heightened trade tensions negatively affected the outlook for metals."

Among other London metals, aluminium CMAL3 slid 1% to $2,504 a ton, zinc CMZN3 lost 0.8% to $2,744, lead CMPB3 fell 0.9% to $1,978 and nickel CMNI3 eased 1.5% to $15,640. Tin CMSN3 was up 0.4% at $32,960.

On the Shanghai Futures Exchange, most metals rose on growth in demand indicators, with China's total social financing, a key measure of future industrial metals demand, up 8.7% in April, a 13-month high, driven by increased government bond issuance.

The most-traded copper contract on the Shanghai Futures Exchange (SHFE) fell 0.3% to 78,230 yuan ($10,851.76) per ton.

SHFE aluminium SAFcv1 rose 0.4% to 20,225 yuan a ton, zinc SZNcv1 gained 0.3% to 22,590 yuan, lead SPBcv1 added 0.3% to 16,975 yuan, nickel price SNIcv1 shed 0.6% to 123,600 yuan, and tin SSNcv1 advanced 0.2% to 265,210 yuan.

($1 = 7.2145 Chinese yuan renminbi)

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