November 16, 2017 / 6:41 AM / 2 years ago

METALS-Copper, nickel slip back towards multi-week lows

 (Updates prices)
    By Melanie Burton
    MELBOURNE, Nov 16 (Reuters) - London nickel and copper
futures edged back towards multi-week lows on Thursday,
reflecting investor worries over a recent spate of data that
showed China's economy cooled in October. 
    "The weak economic data in China earlier this week has
sparked some concerns about demand for stainless steel and
nickel in coming months," ANZ analysts said in a report. 
    "This was enough for investors to lock in some gains after
the 20-percent rally in prices over the past couple of months." 
 
    
    FUNDAMENTALS
    * LME NICKEL: London Metal Exchange nickel had
fallen 0.7 percent to $11,610 a tonne by 0725 GMT, extending a
decline that began after the metal hit two-year highs at $13,030
on Nov. 1. 
    * Nickel's rally was driven by short-covering and investors
anticipating potential battery sector demand, said CRU's Peter
Peng in Beijing. 
    "Currently, the stainless steel market is weak as (there has
been) too much supply since Q3, (so) nickel prices should fall
back in line with real demand from stainless steel." 
     * LME COPPER: LME copper slipped 0.3 percent to
$6,753 a tonne. That was only slightly higher than the $6,713
touched on Wednesday, the weakest since Oct. 10. 
    * SHFE COPPER: Shanghai Futures Exchange copper
lost 0.7 percent to 52,810 yuan ($7,958) a tonne. 
    * OTHER SHANGHAI METALS: Shanghai nickel slid 2.6
percent and lead fell 1.5 percent, in line with recent
weakness in steel on worries that Chinese demand may be cooling
heading into a seasonally lower period of consumption. Zinc
, which has been supported by supply concerns, dropped a
more modest 0.8 percent. 
    * CHINA DATA: Data released on Tuesday showed China's
economy cooled further last month, with industrial output, fixed
asset investment and retail sales missing expectations as the
government extended a crackdown on debt risks and factory
pollution.
    * DOLLAR: The dollar was on the defensive as doubts for the
prospects of U.S. tax reforms, a fall in U.S. stocks, and
declining high-yield bond prices all soured the mood, offsetting
an uptick in underlying U.S. inflation.
    * INVESTORS: Barclays says total commodity investor assets
under management have trended steadily higher and are now in
excess of $300 billion for the first time since 2013.
    * CHINA: China's banking regulator has set new rules for the
country's three policy banks to help rein in risks amid a
broader tightening of controls over the financial sector.

    PRICES    
 BASE METALS PRICES                 0725 GMT          
 Three month LME copper                         6752.5
 Most active ShFE copper                         52820
 Three month LME aluminium                        2110
 Most active ShFE aluminium                      15475
 Three month LME zinc                             3134
 Most active ShFE zinc                           25020
 Three month LME lead                             2419
 Most active ShFE lead                           18510
 Three month LME nickel                          11610
 Most active ShFE nickel                         94050
 Three month LME tin                             19420
 Most active ShFE tin                           143110
                                                      
 BASE METALS ARBITRAGE                                
 LME/SHFE COPPER                 LMESHFCUc3     557.42
 LME/SHFE ALUMINIUM              LMESHFALc3    -791.28
 LME/SHFE ZINC                   LMESHFZNc3     430.24
 LME/SHFE LEAD                   LMESHFPBc3    -897.45
 LME/SHFE NICKEL                 LMESHFNIc3    2675.14
 
($1 = 6.6357 Chinese yuan)

    
 (Reporting by Melanie Burton; Editing by Joseph Radford and
Manolo Serapio Jr.)
  
 
 
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