November 27, 2017 / 6:25 AM / 2 years ago

METALS-London nickel skids, metals slip as investors cut risk

 (Updates prices)
    MELBOURNE, Nov 27 (Reuters) - London nickel led metals lower
on Monday, as investors cut their exposure to risky assets as
Beijing steps up a crackdown on shadow banking and other riskier
forms of financing.
    China will check local governments' investment in railway
projects, the state planner said on Friday, amid official
concerns that breakneck infrastructure spending is racking up
too much debt.
    "Today's selling is also a likely reaction to the U.S. PMI
numbers which fell short on expectations, the Asian stock
markets all losing a little ground and the fact that it appears
some funds/houses will start shutting their books down by the
end of this month," said Kingdom Futures in a report.
    "The year end could become even more volatile as liquidity
further reduces ... we (may) not see the true direction of the
market until after the Chinese New Year in mid February."
    * London Metal Exchange nickel slid 2.8 percent to
$11,695 a tonne, wiping out Friday's near 1 pct gain. Shanghai
nickel fell 1.5 percent, with the most volatile metal
also battered by expectations of rising supply.
    * LME COPPER: Copper hit $7,02 a tonne, its highest
in a month, before reversing to slide 1 percent to $6,929 a
tonne by 0802 GMT. Shanghai Futures Exchange copper
fell 0.4 percent to 53,900 yuan ($8,170). 
    * The U.S. flash composite PMI for November deteriorated to
54.6 compared to 55.2 in October, data over the weekend showed.

    * CHINA ECONOMY: China's industrial firms weathered a broad
government crackdown on financial risks as profits continued to
surge last month in a stabilising force for the world's
second-biggest economy, which has started to cool slightly in
recent months.
    * STRIKE CHILE: Unionized workers at BHP Billiton Plc's
 Escondida copper mine in Chile, the world's
largest, ended a 24-hour strike on Friday but could put down
their tools again next week over the company's planned layoffs,
the union said. 
    * STRIKE PERU: Workers for the two largest unions at
Southern Copper Corp in Peru said on Wednesday they had
started an indefinite strike, demanding a fair share of mining
profits, while the company said the stoppage had not affected
    * FREEPORT: Indonesia's Ministry of State-Owned Enterprises,
tipped to oversee an acquisition of a majority stake in the
local unit of Freeport-McMoRan Inc, has "no clear
structure" yet for the deal, a ministry official said on Friday.
 BASE METALS PRICES                0700 GMT          
 Three month LME copper                        6927.5
 Most active ShFE copper                        53790
 Three month LME aluminium                     2108.5
 Most active ShFE aluminium                     14925
 Three month LME zinc                          3178.5
 Most active ShFE zinc                          25015
 Three month LME lead                            2451
 Most active ShFE lead                          18300
 Three month LME nickel                         11700
 Most active ShFE nickel                        94050
 Three month LME tin                            19470
 Most active ShFE tin                          143070
 BASE METALS ARBITRAGE                               
 LME/SHFE COPPER              LMESHFCUc3       481.57
 LME/SHFE ALUMINIUM           LMESHFALc3     -1230.64
 LME/SHFE ZINC                LMESHFZNc3       174.77
 LME/SHFE LEAD                LMESHFPBc3     -1160.94
 LME/SHFE NICKEL              LMESHFNIc3      2289.43
 ($1 = 6.5975 Chinese yuan)

 (Reporting by Melanie Burton; editing by Richard Pullin and
Sunil Nair)
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