November 9, 2017 / 5:31 AM / a year ago

METALS-London nickel slides more than 2 percent

 (Updates prices)
    By Melanie Burton
    MELBOURNE, Nov 9 (Reuters) - London nickel fell by more than
2 percent on Thursday to its weakest since October as hype over
potential electric vehicle demand that drove last week's rally
died down. 
    The nickel market had been ignoring downside risks from
policy developments in Indonesia and the Philippines, and
instead was focusing on potential future demand from electric
vehicle batteries, said Morgan Stanley in a report. 
    "We (have) heard little to alter our view that producing
NiSO (nickel sulphate) isn't particularly challenging/costly and
we see near-term downside risk to price," it said. 
    The bank expects annual demand for nickel from the EV sector
to grow to 300,000 tonnes by 2025. 
    * NICKEL: London nickel fell by 2.5 percent in its
biggest one-day slide since September, while Shanghai Futures
Exchange nickel dropped 2.2 percent. Traders said
prices were correcting after they surged by 10 percent across an
industry week in London last week. 
    * CHINA: Appetite for nickel has been driven up as battery
makers increasingly turn to the base metal to help power global
electric car sales. Demand for nickel will outstrip global
supply for the third year in a row in 2018, according to Chinese
state-backed research firm Antaike.
    * COPPER: London Metal Exchange copper eased by 1
percent to $6,789.50 a tonne by 0707 GMT, erasing a small gain
from the previous session. It matched its trough from Wednesday
at $6,780, which was its lowest since Oct. 11. ShFE copper
 also slipped 1 percent to 53,230 yuan ($8,026) a tonne.
    * SHFE ALUMINIUM: Shanghai aluminium fell 2.7
percent to its weakest since early August amid speculation that
China's war on pollution could also hit manufacturers of
aluminium products and curb demand. 
    * CHINA INFLATION: China's producer prices were surprisingly
strong in October, while consumer inflation picked up pace,
suggesting the world's second-largest economy remains robust
despite expected curbs on factory output as the government
pursues a punishing war on smog.
    * JAPAN: Japan's core machinery orders tumbled in September,
a decline that companies expect to continue into
October-December in a sign that business investment is losing
    * NICKEL: Brazil's miner Vale SA said on
Wednesday it had received bids to invest in its New Caledonia
nickel project as the company re-evaluates its nickel
     * POLL: Resurgent industrial metals prices, powered by
enthusiasm for the electric vehicle (EV) revolution and a
Chinese pollution crackdown are starting to look overcooked -
raising the risk of a correction next year, a Reuters poll
     * COMING UP: Germany Trade data for Sep
 BASE METALS PRICES                     0703             
 Three month LME copper                            6789.5
 Most active ShFE copper                            53230
 Three month LME aluminium                           2095
 Most active ShFE aluminium                         15475
 Three month LME zinc                              3176.5
 Most active ShFE zinc                              25495
 Three month LME lead                              2499.5
 Most active ShFE lead                              18855
 Three month LME nickel                             12380
 Most active ShFE nickel                            99110
 Three month LME tin                                19450
 Most active ShFE tin                              142060
 BASE METALS ARBITRAGE                                   
 LME/SHFE COPPER              LMESHFCUc3           622.89
 LME/SHFE ALUMINIUM           LMESHFALc3          -646.35
 LME/SHFE ZINC                LMESHFZNc3           607.97
 LME/SHFE LEAD                LMESHFPBc3         -1127.82
 LME/SHFE NICKEL              LMESHFNIc3          1955.07
 ($1 = 6.6318 Chinese yuan)

 (Reporting by Melanie Burton; Editing by Tom Hogue and Sunil
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