July 11, 2016 / 2:53 AM / 4 years ago

METALS-London nickel hits over $10,000, copper climbs with risk appetite

* Philippines mining crackdown stokes bullish stance on nickel

* Copper speculators turn net long in latest week -CFTC

* Coming up: U.S. employment trends June at 1400 GMT (Adds comment, detail; updates prices)

By Melanie Burton

MELBOURNE, July 11 (Reuters) - London nickel sprang above the $10,000 mark on Monday as prices gathered steam on supply concerns after the Philippines toughened its stance on mining, threatening supply to China.

LME nickel climbed 2.7 percent to $10,150 a tonne, within sight of the $10,410 a tonne it touched on July 4, the highest since last October. Prices have jumped 32 percent from 13-year lows hit in mid-February.

The Philippines has ordered the suspension of operations at two nickel ore mines for environmental violations and halted the issuance of exploration permits as a nationwide crackdown led by a new mining minister begins.

The move could curb nickel ore shipments from the Southeast Asian country, the top supplier to No. 1 market China, and push global prices up further.

However, a huge glut of stocks - equal to half a year’s supply - could put the brakes on any rally.

Elsewhere, three-month copper on the London Metal Exchange had rallied 1.5 percent to $4,781 a tonne by 0725 GMT, adding to 0.6-percent gains from the previous session.

Prices have found a near-term floor at the 30-day moving average around $4,680 a tone, after peaking at a two-month top of $4,960 a tonne on July 4.

Shanghai Futures Exchange copper edged up 0.9 percent to 37,020 yuan ($5,536) a tonne

Macroeconomic sentiment continued to dominate metals after last week’s solid U.S. jobs report fanned risk appetite.

U.S. job growth surged in June as manufacturers and other employers boosted hiring, confirming the economy has regained speed after a first-quarter lull.

Citi sees limited fallout from the Brexit vote for commodities demand, which it expects to improve in the second half on strong U.S. growth.

China’s economic growth likely cooled to a fresh seven-year low of 6.6 percent in the second quarter, raising expectations it will step in to support its economy.

In China, Citi sees a jump in power infrastructure demand, new housing sales and a drop in housing inventory boosting 2016 demand growth to 3 percent from 2.7 percent last year, offsetting 2.5-percent growth in mine supply this year.

“We continue to expect copper to trade relatively range bound through the second half,” it said.

Meanwhile, workers at Anglo American’s small El Soldado copper mine in Chile began a strike on Friday after failing to reach agreement in contract talks.

Hedge funds and money managers turned net long in copper positions in the week to July 5, U.S. Commodity Futures Trading Commission (CFTC) data showed.


Three month LME copper

Most active ShFE copper

Three month LME aluminium

Most active ShFE aluminium

Three month LME zinc

Most active ShFE zinc

Three month LME lead

Most active ShFE lead

Three month LME nickel

Most active ShFE nickel

Three month LME tin

Most active ShFE tin ($1 = 6.6875 Chinese yuan renminbi) (Reporting by Melanie Burton; Editing by Joseph Radford and Richard Pullin)

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