METALS-Shanghai nickel jumps on tight stocks, output concerns


 (Adds comment, details on Philippine outages, updates prices)
    BEIJING, Jan 11 (Reuters) - Nickel prices on the Shanghai
Futures Exchange (ShFE) climbed as much as 1 percent to their
highest in two months on Thursday, tracking a rise in London a
day earlier, as concerns over low stock levels and production
outages lent support to the market.
    "Nickel cathode in the warehouses is very tight... so
there is some possibility to squeeze [broker'] selling
positions," said Xu Aidong, chief nickel analyst, Antaike.
    Deliverable ShFE nickel warehouse stocks stood at 48,920
tonnes as of Jan. 5, compared with over 90,000 tonnes a year
ago. 
    Four nickel mines in the Zambales region of the Philippines,
a key nickel exporter, remain shut on environmental grounds, an
official said on Thursday, while Japan's Sumitomo Corp
has suspended output at a mine in Madagascar following a
cyclone.
    "The four mines in Zambales are still not allowed to resume
production," said Wilfredo Moncano, director of the Philippine
Mines and Geosciences Bureau. "No extraction, no new mining
activities. What's only allowed is hauling of ores from their
stockpiles."
            
    FUNDAMENTALS
    * SHFE NICKEL: The most traded Shanghai nickel contract
 climbed 0.9 percent at 101,220 yuan ($15,535.26) a
tonne at the mid-session interval, having earlier touched
102,380 yuan a tonne, its highest since Nov. 9.
    * LME NICKEL: Benchmark nickel on the London Metal
Exchange (LME) was down 0.7 percent at $12,840 a tonne, as of
0510 GMT, partly reversing Wednesday's gains, when it touched
$13,200 a tonne, its highest since June 2015.
    * MADAGASCAR: Sumitomo said on Thursday the company and its
partners Sherritt International Corp and Korea Resources
Corp            halted output at the Ambatovy nickel mine in
Madagascar on Jan. 4, the day before Cyclone Ava hit the area. 

    * COPPER: Three-month copper on the LME was up 0.2
percent at $7,169 a tonne, building on its 0.7 percent gain in
the previous session. The most-traded SHFE copper contract
 was up 0.4 percent at 55,090 yuan a tonne.
    * CHINA: Tongling Nonferrous Metals Group, one
of China's top copper smelters, will suspend production at its
Jinguan Copper unit for three days from Friday for repairs, a
source familiar with the matter said.
    * PERU: The government of Peruvian President Pedro Pablo
Kuczynski is evaluating a $2.4 billion railway project to
transport mineral concentrates from a copper-rich Andean region
to the Pacific coast for export.
    * ALUMINIUM: The most-traded aluminium contract on the ShFE
 climbed 1.3 percent to 15,220 yuan per tonne, pulled
higher by Wednesday's 1.4 percent jump in London. 
    * FRANCE: Liberty House, the industrial arm of British steel
tycoon Sanjeev Gupta's GFG Alliance, has made a binding offer
for miner Rio Tinto's aluminium smelter in
Dunkirk, France, the largest in Europe.
    * COBALT: Democratic Republic of Congo is considering more
than doubling royalties on cobalt, a key ingredient in
lithium-ion batteries, under a new mining code nearing
parliamentary approval, the mines minister said on Wednesday.

    * For the top stories in metals and other news, click       
 or     
        
    MARKETS NEWS    
    * The New Year rally in Asian shares ran out of steam on
Thursday as concerns about the U.S. administration's
protectionist stance hit Wall Street while U.S. bonds were
dented by speculation China may curtail buying.    
    
        
    DATA AHEAD (GMT)
    
    0900  Germany Full Year GDP 2017
    1000  Euro Zone Industrial Production Nov    
        
    PRICES        
    
    
 BASE METALS PRICES                       0510 GMT
 Three month LME copper                       7169
 Most active ShFE copper                     55090
 Three month LME aluminium                  2198.5
 Most active ShFE aluminium                  15220
 Three month LME zinc                         3357
 Most active ShFE zinc                       26180
 Three month LME lead                       2561.5
 Most active ShFE lead                       19370
 Three month LME nickel                      12840
 Most active ShFE nickel                    101220
 Three month LME tin                         20040
 Most active ShFE tin                       145340
                                                  
 BASE METALS ARBITRAGE                            
 LME/SHFE COPPER              LMESHFCUc3    580.65
 LME/SHFE ALUMINIUM           LMESHFALc3  -1449.01
                                          
 LME/SHFE ZINC                LMESHFZNc3    298.27
 LME/SHFE LEAD                LMESHFPBc3   -747.89
 LME/SHFE NICKEL              LMESHFNIc3   1652.88
                                          
 
($1 = 6.5155 Chinese yuan)

    
 (Reporting by Tom Daly; additional reporting by Enrico Dela
Cruz in Manila; Editing by Richard Pullin and Sherry
Jacob-Phillips)
  
 
 


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