February 14, 2018 / 5:32 AM / 4 days ago

METALS-Shanghai copper jumps most since Oct on short-covering ahead of holiday

 (Adds Shanghai closing prices, updates London prices)
    BEIJING, Feb 14 (Reuters) - Shanghai copper prices rose for
a second session on Wednesday, registering their biggest daily
leap since October, as traders took up new positions in the
metal before the Shanghai Futures Exchange (ShFE) closed for a
national holiday.
    Market open interest on Shanghai copper hit 811,170 lots on
Tuesday, the highest since January 2016, ahead of the Lunar New
Year holiday in China beginning on Thursday.    
    Traders were likely covering their short positions ahead of
the week-long holiday, which could put them at some risk due to
volatility in London Metal Exchange (LME) prices.
    London copper prices earlier rose back above the level of
$7,000 a tonne that has provided support so far in 2018, before
easing back as the dollar trimmed its losses. 
    "Copper has made a strong attempt to regain $7,000 as the
big figure and there certainly has been Chinese buying in front
of tomorrow's New Year shutdown," Malcolm Freeman, CEO of
Kingdom Futures, wrote in a note.
            
    FUNDAMENTALS
    * SHFE COPPER: The most-traded April copper contract on the
ShFE ended up 1.8 percent at 52,790 yuan ($8,323.87) a
tonne for its highest close in a week and biggest daily jump
since Oct. 17.    
    * LME COPPER: Three-month copper on the London Metal
Exchange gave up early gains to trade down 0.1 percent
at $6,979 a tonne, as of 0824 GMT.     
    * NICKEL/ZINC: Shanghai nickel closed up 3.2
percent, tracking a 2.7 percent rise in London on Tuesday, while
zinc finished 2.3 percent higher on indications of a
tight market.
    * ALUMINIUM: U.S. President Donald Trump said on Tuesday he
was considering a range of options to address steel and
aluminium imports that he said were unfairly hurting U.S.
producers, including tariffs and quotas.
    * CENTRAL ASIA: Base metals miner Central Asia Metals (CAML)
 is on the hunt for a new copper project in Southern
Africa for up to $400 million in what would be its first foray
into the continent, its chief executive said.
    * COBALT: The London Metal Exchange could remove companies
from its list of approved metal suppliers if they fall short of
industry standards following an outcry about cobalt mined by
children in Africa, three sources said.
    
    * For the top stories in metals and other news, click       
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    MARKETS NEWS    
    * Asian share markets turned mixed on Wednesday as investor
nerves were strained ahead of a U.S. inflation report that could
soothe, or inflame, fears of faster rate hikes globally.
    
    
  PRICES  
 BASE METALS PRICES                         0818 GMT
 Three month LME copper                         6994
 Most active ShFE copper                       52780
 Three month LME aluminium                    2128.5
 Most active ShFE aluminium                    14100
 Three month LME zinc                           3459
 Most active ShFE zinc                         26650
 Three month LME lead                           2545
 Most active ShFE lead                         19310
 Three month LME nickel                        13500
 Most active ShFE nickel                      103490
 Three month LME tin                           21600
 Most active ShFE tin                         148800
                                                    
 BASE METALS ARBITRAGE                              
 LME/SHFE COPPER              LMESHFCUc3        1069
 LME/SHFE ALUMINIUM           LMESHFALc3    -1573.49
                                          
 LME/SHFE ZINC                LMESHFZNc3      613.97
 LME/SHFE LEAD                LMESHFPBc3     -184.86
 LME/SHFE NICKEL              LMESHFNIc3     2236.34
                                          
 
    ($1 = 6.3420 Chinese yuan)

    
 (Reporting by Tom Daly, Editing by Sherry Jacob-Phillips)
  
 
 
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