(Adds Philippine nickel detail, updates prices)
By Melanie Burton
MELBOURNE, May 3 London copper dropped on
Wednesday from a three-week high hit the session before as the
dollar ticked higher on expectations the Federal Reserve will
signal a June rate rise later in the session.
Nickel prices also fell after Philippine lawmakers rejected
the appointment of Regina Lopez as Environment Secretary,
potentially paving the way to ease a crackdown on the country's
mines. Philippines is a major exporter of nickel laterite ore.
Lopez had angered the mining sector after ordering in
February the closure of more than half the country's mines and
the cancellation of dozens of contracts for undeveloped mines to
protect water resources. Last week, she banned open-pit mining.
* LME COPPER: London Metal Exchange copper fell by
1.7 percent to $5,702.50 a tonne by 0750 GMT, erasing 1.2
percent gains from the previous session when prices topped out
at $5,820 a tonne, the highest in three weeks, and closed at the
100-day moving average.
* LME nickel slid 1.7 percent.
* TECHNICALS: Traders said prices were consolidating having
failed to convincingly push upside beyond resistance at the
* SHFE COPPER: Shanghai Futures Exchange copper
slipped by 0.6 percent to 46,580 yuan ($6,757) a tonne.
* OTHER METALS: LME zinc and lead fell
around 2 percent on the LME and almost 2 percent in Shanghai,
tracking a drop in steel.
* ZINC PREMIUMS: But premiums for zinc held in China bonded
zones started to rise last week to $120-130 from $105-115, the
strongest since February as long standing shortfall in mine
supply begins to impact the refined market. ZN-BMPBW-SHMET
* HOLIDAYS: Japan was on its Golden Week holiday, draining
liquidity from the market while it was also a public holiday in
* CHINA FOREX: Moves to control capital outflows and
concerns over a potential further depreciation of the yuan are
likely to impede the internationalisation of Chinese currency,
Fitch credit rating agency said.
* METALS POLL: Aluminium's global surplus will fall sharply
this year due to an environmental crackdown in top producer
China and move to a deficit in 2018, although the market has
largely priced in the impact, a Reuters poll showed.
* NICKEL: Indonesia's state-controlled miner PT Aneka
Tambang (Antam) will resume exports of nickel ore this
month, with an initial shipment of 150,000 tonnes expected to
leave for China in early May.
* MARKETS: Asian stocks were mixed on Wednesday, moderating
after earlier strong gains on positive global earnings and
manufacturing data, while expectations that the Federal Reserve
will signal a June rate increase later in the session lifted the
* COMING UP: Euro zone GDP flash Q1 at 0900 GMT, Federal
BASE METALS PRICES 0750 GMT
Three month LME copper 5699
Most active ShFE copper 46550
Three month LME aluminium 1915
Most active ShFE aluminium 13960
Three month LME zinc 2608
Most active ShFE zinc 21890
Three month LME lead 2192
Most active ShFE lead 16230
Three month LME nickel 9350
Most active ShFE nickel 79370
Three month LME tin 19905
Most active ShFE tin 142950
BASE METALS ARBITRAGE
LME/SHFE COPPER LMESHFCUc3 686.5
LME/SHFE ALUMINIUM LMESHFALc3 -1327.53
LME/SHFE ZINC LMESHFZNc3 298.47
LME/SHFE LEAD LMESHFPBc3 -1917.98
LME/SHFE NICKEL LMESHFNIc3 2820.74
($1 = 6.8934 Chinese yuan)
(Reporting by Melanie Burton; Editing by Sunil Nair and