September 10, 2019 / 7:25 AM / 9 days ago

METALS-Shanghai nickel jumps ahead of key Indonesia meeting

 (Adds Shanghai closing prices, updates London prices)
    BEIJING, Sept 10 (Reuters) - Shanghai nickel rose sharply on
Tuesday as supply shortage fears persisted after top miner
Indonesia expedited a ban on nickel ore exports, while market
participants awaited clues on alternative supply plans from a
key conference in Jakarta. 
    Traders of the metal, which is used to make stainless steel
and electric vehicle batteries, have started arriving in
Indonesia for the Asian Nickel conference.
    Indonesia plans to ban nickel ore exports from January 2020.
    Nickel prices were also higher in London, at about $18,100 a
tonne, within striking distance of a near five-year high of
$18,850 touched on Sept. 2, when Indonesia confirmed the ban.   
    "Our nickel bull case of an Indonesian ore export ban before
2020 has become our base," Citi said in a note, revising up its
price forecast for next year to $17,500 a tonne from $14,000.
"We find that nickel spot prices are high enough to accelerate
investment in Indonesia," it added.        
    
    FUNDAMENTALS
    * NICKEL: The most-traded November nickel contract on the
Shanghai Futures Exchange rose as much as 3.4%
overnight and ended Tuesday's daytime session up 2.7% at 144,090
yuan ($20,264.40) a tonne. Three-month London nickel
climbed for a third session, rising 0.5% to $18,140 a tonne by
0703 GMT after closing up 2.1% on Monday.  
    * NICKEL: Nickel ore output in the Philippines rose 3% in
the first half of 2019 to 11.31 million tonnes, the Mines and
Geosciences Bureau said, despite zero production at more than
half the country's mines.
    * PHILIPPINES: Marcventures Holdings Inc said it
plans to develop and put a new mine into commercial operation by
2021, as the Philippine nickel ore producer seeks to take
advantage of Indonesia's ban.
    * POSITIONING: The net speculative long position on LME
nickel reached 43% of open interest, or 75,000 lots, on Sept. 5,
the highest in two years, brokerage Marex Spectron estimates.
    * COPPER: LME copper gained 0.4% to $5,838.50 a
tonne despite weak economic data from top consumer China after
state media said Beijing would create favourable conditions for
private firms and improve the competitiveness of its
manufacturing sector. ShFE copper closed up 0.1% at  
47,430 yuan a tonne. 
    * CHINA: China's producer price index, a key barometer of
corporate profitability, dropped 0.8% from year earlier, the
National Bureau of Statistics said, the worst year-on-year
contraction since August 2016.
    * COLUMN: Copper finely poised between negative macro and
robust micro: Andy Home
      
    MARKETS NEWS    
    * Most Asian stocks swung lower, weighed by Chinese markets
after mainland factory-gate prices shrank.    
        
    PRICES    
 BASE METALS PRICES                       0709 GMT
 Three month LME copper                     5834.5
 Most active ShFE copper                     47430
 Three month LME aluminium                  1803.5
 Most active ShFE aluminium                  14350
 Three month LME zinc                       2318.5
 Most active ShFE zinc                       19020
 Three month LME lead                       2092.5
 Most active ShFE lead                       17415
 Three month LME nickel                      18150
 Most active ShFE nickel                    144080
 Three month LME tin                         17305
 Most active ShFE tin                       140770
                                                  
 BASE METALS ARBITRAGE                            
 LME/SHFE COPPER             LMESHFCUc3     611.52
 LME/SHFE ALUMINIUM          LMESHFALc3    -137.75
                                         
 LME/SHFE ZINC               LMESHFZNc3     197.42
 LME/SHFE LEAD               LMESHFPBc3    -185.09
 LME/SHFE NICKEL             LMESHFNIc3   -4434.16
                                         
 ($1 = 7.1105 Chinese yuan)

 (Reporting by Tom Daly; Editing by Subhranshu Sahu and Sherry
Jacob-Phillips)
  
 
 
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