SYDNEY, Aug 28 (Reuters) - Most Chinese base metals futures were lower on Monday as investors took profits following hefty gains last week.
Metals linked with steel markets - nickel, zinc and lead - recorded the biggest losses, with only copper in positive territory.
“We’re seeing a pullback from last week in step with steel, and with the LME (London Metal Exchange) closed, there’s some loss in direction,” a commodities trader in Sydney said.
Monday is a market holiday in Britain and the London Metal Exchange will be closed.
ZINC DOWN: The most traded Shanghai Futures Exchange zinc contract dropped more than 2 percent to 25,565 yuan ($3,846) a tonne by 0100 GMT. Zinc is chiefly used in steel galvanising. ShFE Nickel fell 1.8 percent, while lead lost 2.3 percent. Nickel is used in stainless steel.
STEEL GAINS FADE: The most-traded rebar on the Shanghai Futures Exchange was down more than 2 percent, after last week clocking its fourth week of gains out of five.
SHFE COPPER: ShFE copper eked out a modest 0.8 percent gain, building on a robust demand outlook for the metal in China. But traders said the contract could face some resistance attempting to retrace Friday’s intraday gains that swept the contract to its highest since March 2013.
COPPER INVENTORIES: Copper found support after data showed weekly copper stocks in warehouses registered by the Shanghai Futures Exchange declined by 8.2 percent to 187,444 tonnes CU-STX-SGH. Meanwhile, on-warrant inventories - those not earmarked for removal - in London Metal Exchange (LME) depots have halved to 112,950 tonnes over the past six weeks MCUSTX-TOTAL.
BHP POTASH: Anglo-Australian mining giant BHP Billiton is considering selling a 25 percent interest in its Canadian potash mine project, a stake that could be worth close to $2 billion, people familiar with the matter told Reuters.
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* The euro hit a 2 1/2-year high early on Monday after European Central Bank President Mario Draghi refrained from talking down the single currency, while oil prices rose after Hurricane Harvey struck at the heart of the U.S. energy industry.
DATA/EVENTS 1230 U.S. Adv Good Trade Balance Jul 1430 U.S. Dalls Fed Mfg Bus Idx Aug
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 = 6.6465 Chinese yuan renminbi)
Reporting by James Regan; Editing by Richard Pullin