September 28, 2018 / 4:08 AM / 3 months ago

METALS-Shanghai aluminium falls for 4th day, clocks worst month since March

 (Adds nickel milestone, updates prices)
    BEIJING, Sept 28 (Reuters) - Shanghai aluminium prices
dropped for a fourth session on Friday and recorded their
steepest monthly drop since March after China decided not to
impose blanket cuts on industrial output in 28 northern cities
this winter.
    The production cuts are to be determined by local
authorities and the market expects less restrictions on
aluminium supply.
    Shanghai nickel closed down 0.5 percent, tracking a fall in
the ferrous complex, and ended the third quarter down 11.1
percent, its biggest quarterly drop in three years. 
    The London base metals complex was broadly higher, however,
with copper adding 0.5 percent amid thin trade before China
shuts down for a week-long holiday.
    "If you look at the regional macro cues they are all higher.
Ahead of the holidays maybe people don’t want to be short," said
Matt France, head of Asia institutional metal sales at Marex
Spectron in Singapore. 
            
    FUNDAMENTALS
    * ALUMINIUM: Shanghai aluminium fell as much as 1.5
percent to 14,275 yuan a tonne, the lowest since July 23 and
closed down 1.2 percent at 14,310 yuan. The metal notched a 4.2
percent drop in Shanghai in September. London Metal Exchange
aluminium was down 0.2 percent to $2,026.50 a tonne as
of 0717 GMT after hitting a one-week low.
    * LME COPPER: Three-month LME copper was up 0.5
percent to $6,216 a tonne, snapping four straight sessions of
declines. Copper has fallen 2.4 percent this week, putting it on
course for its steepest weekly fall in six, although it is also
heading for a 4.1 percent gain over September, which would be
its best month since December 2017.
    * SHFE COPPER: The most-traded November copper contract on
the Shanghai Futures Exchange closed down 0.4 percent
at 50,170 yuan a tonne.
    * GRASBERG: Global mining giants Freeport McMoRan Inc
 and Rio Tinto have struck a binding accord to
sell a majority stake in the world's second-biggest copper mine,
Grasberg, to Indonesia's state mining company, Inalum for $3.85
billion.
    * NICKEL: Chinese battery firm GEM Co Ltd on
Friday said it was teaming up with four companies to invest a
total of $700 million in a project to produce battery-grade
nickel chemicals in Indonesia.
    * For the top stories in metals and other news, click       
 or     
        
    MARKETS NEWS    
    * Japan's Nikkei raced to a 27-year high on Friday on the
back of a lower yen and improved prospects for corporate
earnings, while optimism over the U.S. economy's short-term
outlook supported broad risk appetite and the dollar.
                
    PRICES
 BASE METALS PRICES                        0731 GMT
 Three month LME copper                      6214.5
 Most active ShFE copper                      50170
 Three month LME aluminium                     2029
 Most active ShFE aluminium                   14310
 Three month LME zinc                          2546
 Most active ShFE zinc                        21915
 Three month LME lead                        2015.5
 Most active ShFE lead                        18105
 Three month LME nickel                       12670
 Most active ShFE nickel                     104510
 Three month LME tin                          18875
 Most active ShFE tin                        147900
                                                   
 BASE METALS ARBITRAGE                             
 LME/SHFE COPPER              LMESHFCUc3     286.86
 LME/SHFE ALUMINIUM           LMESHFALc3   -1885.74
 LME/SHFE ZINC                LMESHFZNc3     828.32
 LME/SHFE LEAD                LMESHFPBc3    1137.91
 LME/SHFE NICKEL              LMESHFNIc3     1912.9
 
($1 = 6.8861 Chinese yuan)

    
 (Reporting by Tom Daly; Editing by Sherry Jacob-Phillips and
Vyas Mohan)
  
 
 
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