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METALS-Nickel, zinc lead base metals higher amid China supply fears
October 4, 2017 / 2:02 AM / 2 months ago

METALS-Nickel, zinc lead base metals higher amid China supply fears

SYDNEY, Oct 4 (Reuters) - Nickel and zinc led most base metals higher on Wednesday, building on overnight gains amid mounting supply concerns in China.

Commodities traders said the market was still digesting the impact of China’s environmental crackdown on ageing metals and mining operations on its future imports.

“The more China reduces what it can produce at home, the more it will need to import, simple as that,” a trader in Perth said.

FUNDAMENTALS

* NICKEL UP: Three-month nickel on the London Metal Exchange rose 1 percent to $10,725 a tonne by 0140 GMT, extending a 2.2 percent gain from the previous session. ANZ in a report said nickel was finding support via a “widening shortfall” in the metal used in making stainless steel and batteries.

* SHFE CLOSED: Shanghai Futures Exchange is closed this week to observe national holidays in China.

* ZINC BUILDS: Three-month zinc gained 0.7 percent to $3,288 a tonne, close to its 10-year high of $3,292 reached in intraday trading on Tuesday.

* ZINC DISPUTE: Striking workers at North America’s second-largest zinc processing plant, owned by the Noranda Income Fund, have rejected a wage and pension offer from the company, Noranda and the union representing workers said on Tuesday.

* GLENCORE DEAL: Miner and commodities trader Glencore has agreed to buy a further stake worth at least $531 million in Peru’s largest zinc miner, Volcan Compañia Minera, the company said on Tuesday.

* ALUMINIUM RISES: Three-month aluminium gained 0.5 percent to $2,142 a tonne after rising 1.25 percent overnight. China’s crackdown on pollution has helped boost prices in aluminium by 27 percent this year on expectations of widespread capacity shutdowns during winter.

* COPPER STEADY: Three-month copper was steady at $6,521 a tonne, heading for a third-straight day of gains.

* INDONESIA TAX: Miners operating in Indonesia will have to pay a share of their after-tax profits to both the central and local governments under new tax rules under consideration for next year, according to documents outlining the proposal reviewed by Reuters.

* For the top stories in metals and other news, click or

MARKETS NEWS

* Japanese shares climbed on Wednesday led by auto stocks as U.S. demand for cars ballooned following damage from recent hurricanes, while the dollar traded cautiously amid speculation over the next head of the Federal Reserve.

DATA AHEAD (GMT) 0750 France Markit services PMI Sep 0755 Germany Markit services PMI Sep 0800 Euro zone Markit services PMI final Sep 0900 Euro zone Retail sales Aug 1215 U.S. ADP national employment Sep 1400 U.S. ISM non-manufacturing PMI Sep 1915 Federal Reserve Chair Janet Yellen gives brief welcome remarks at banking event in St. Louis

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

Reporting by James Regan; Editing by Sonali Paul

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