October 11, 2018 / 5:30 AM / 2 months ago

METALS-Base metal prices drop, track equities rout on macro fears

 (Adds Shanghai closing prices, updates London prices)
    BEIJING, Oct 11 (Reuters) - Base metals prices fell sharply
on Thursday, tracking a broad sell-off on equity markets as a
gloomy macro-economic outlook raised concerns over
demand-growth.
    Shanghai shares slumped 5.2 percent to their lowest
level since late 2014 after Wall Street suffered its worst
drubbing in eight months on Wednesday.
    "Base metals again fell victim to macro concerns amid a
falling equity market. In the near-term, we think that this will
remain the case," ANZ wrote in a note.
    The price plunge comes even as inventories continue to drop,
with London Metal Exchange copper stocks falling for 13 straight
days to their lowest since June 2016 MCUSTX-TOTAL.
    Malcolm Freeman, director of Kingdom Futures, said in a note
that the sell-off in metals was driven by algorithmic trading
and was "ignoring underlying fundamentals".
    "It may well be a case of stand aside until the storm dies
down," he said. 
    
    FUNDAMENTALS
    * LME COPPER: Three-month copper on the LME had
fallen 1.1 percent to $6,173.50 a tonne by 0728 GMT, extending a
0.8 percent drop from the previous session.
    * SHFE COPPER: The most-traded November copper contract on
the Shanghai Futures Exchange closed 1.4 percent lower
at 49,980 yuan ($7,217.33) a tonne.
    * OTHER METALS: Shanghai aluminium finished down
2.1 percent, while nickel lost 2.6 percent and zinc
, which hit its highest since June on Wednesday, slipped
1 percent. Shanghai lead and tin were the only
gainers, nudging up 0.3 percent and 0.1 percent, respectively.
    * ALUMINA: Norway's Norsk Hydro is focused on a
return to full output at its Alunorte alumina refinery in Brazil
and is not contemplating layoffs there, CEO Svein Richard
Brandtzaeg told Reuters on Wednesday.
    * ALUMINIUM: Rio Tinto is close to
restarting a sale process for some of its aluminium assets,
including a plant in Iceland, which have been valued at around
$350 million, two sources familiar with the matter said.
    * GANFENG: China's Ganfeng Lithium fell 20 percent
on its first day of trade in Hong Kong, a grim debut that
follows a disappointing share sale and an ill wind for a planned
listing by rival Tianqi Lithium.
 
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   PRICES        
 BASE METALS PRICES                        0729 GMT
 Three month LME copper                        6171
 Most active ShFE copper                      49970
 Three month LME aluminium                     2023
 Most active ShFE aluminium                   14185
 Three month LME zinc                          2611
 Most active ShFE zinc                        22610
 Three month LME lead                          1890
 Most active ShFE lead                        18200
 Three month LME nickel                       12505
 Most active ShFE nickel                     103350
 Three month LME tin                          18990
 Most active ShFE tin                        147000
                                                   
 BASE METALS ARBITRAGE                             
 LME/SHFE COPPER              LMESHFCUc3      50.51
 LME/SHFE ALUMINIUM           LMESHFALc3   -1985.23
 LME/SHFE ZINC                LMESHFZNc3     362.32
 LME/SHFE LEAD                LMESHFPBc3     1731.5
 LME/SHFE NICKEL              LMESHFNIc3    1725.65
 
  


($1 = 6.9250 Chinese yuan renminbi)

    
 (Reporting by Tom Daly; Editing by Joseph Radford and Vyas
Mohan)
  
 
 
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