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METALS-Nickel prices fall again amid supply glut worries
June 1, 2017 / 7:20 AM / 7 months ago

METALS-Nickel prices fall again amid supply glut worries

(Updates prices)

By James Regan

SYDNEY, June 1 (Reuters) - Nickel prices fell further on Thursday to hover around 11-month lows, dragged down by worries about oversupply and fears of tepid demand from steel mills in top metals consumer China.

“We’re not seeing much that would put nickel back in positive territory,” said a trader in Perth, speaking on condition of anonymity.

“On the supply side, it looks more will be coming out of the Philippines and Indonesia, which is not good for prices.”

Nickel was also caught up in broader negative sentiment after a survey showed China’s manufacturing activity unexpectedly contracted in May for the first time in 11 months as demand weakened and shrinking factory prices dented profits.

* LME NICKEL: Benchmark nickel on the London Metal Exchange was trading 0.7-percent lower at $8,905 at 0700 GMT. Overnight, it hit its lowest since late June at $8,825.

* SHANGHAI NICKEL: Shanghai Futures Exchange nickel ended down 1.20 percent at 73,160 yuan ($10,763) a tonne, after dropping 3.4 percent in the previous session.

* PHILIPPINES: President Rodrigo Duterte this month appointed a former military man as the new environment minister after Congress dismissed his first choice, who had ordered the closure of more than half of the mines in the world’s top nickel ore supplier.

* INDONESIA: The relaxation in January of Indonesia’s ban on exporting unprocessed nickel ore - in place since the start of 2014 - has added to concerns over rising supply.

* NICKEL STOCKS: High inventories at LME warehouses are also a negative for nickel prices, traders said. Stocks at more than 378,000 tonnes account for almost 20 percent of global consumption estimated at nearly 2 million tonnes this year.

* LME COPPER: Three-month LME copper was down slightly at $5,676.50 a tonne, reversing modest gains from the previous session.

* SHANGHAI COPPER: The most-traded ShFE copper contract was down 0.44 percent at 45,340 yuan a tonne.

* BHP COPPER: BHP Billiton said on Thursday it had lifted a declaration of force majeure at its Escondida copper mine in Chile.

* NICKEL STOCKS: High inventories at LME warehouses are also a negative for nickel prices, traders said. Stocks at more than 378,000 tonnes account for almost 20 percent of global consumption estimated at nearly 2 million tonnes this year.

* WARRANT HOLDINGS: Traders are watching large holdings of LME cash contracts and warrants of aluminium and nickel. <0#LME-WHC>

PRICES

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

ARBS ($1 = 6.7975 Chinese yuan renminbi)

Reporting by James Regan; Editing by Joseph Radford

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