March 4, 2019 / 5:27 AM / 4 months ago

METALS-Nickel jumps on tight supply, stainless steel restocking

 (Adds Shanghai closing prices, updates London prices)
    BEIJING, March 4 (Reuters) - China's nickel futures rose
more than 2 percent to a near five-month high on Monday, while
London nickel touched a fresh six-month peak, as the metal used
to make stainless steel tracked the ferrous complex higher. 
    "The price of stainless steel continues to rise (and) supply
of ferronickel is very tight," GF Futures said in a note, adding
that Wuxi Stainless Steel Exchange inventories had risen by over
10,000 tonnes, or 4.2 percent, since the first half of February.
    Chinese steel mills are "actively replenishing their stocks
amid rising stainless steel prices," and nickel supply will
remain tight in the short term, CITIC Futures said in a note.
    On the London Metal Exchange, nickel prices, which jumped by
1.1 percent on Friday, have climbed almost 25 percent so far
this year, making the metal the best performer in the LME
complex.
        
    FUNDAMENTALS
    * LME NICKEL: Three-month LME nickel rose as much as
1.6 percent to $13,405 a tonne, the highest since Aug. 30, and
was at $13,330 a tonne as of 0709 GMT. 
    * SHFE NICKEL: The most-traded May nickel contract on the
Shanghai Futures Exchange climbed as much as 2.4
percent to 105,630 yuan a tonne, its highest since Oct. 11,
before closing at 104,901 yuan. 
    * NICKEL STOCKS: Nickel inventories in LME-registered
warehouses MNI-STOCKS have declined for eight days in a row
and stand at just under 197,000 tonnes, down from more than
330,000 tonnes a year ago.
    * VALE: The chief executive of Brazil's Vale SA,
the world's top nickel producer, and several other senior
executives resigned on Saturday in what the company described as
a temporary move.
    * COPPER: Three-month LME copper edged down 0.3
percent to $6,458.50 a tonne, while ShFE copper closed
down 0.5 percent at 50,010 yuan a tonne.
    * TARIFFS: The United States Trade Representative's office
has released language to delay a scheduled hike in tariffs on
$200 billion worth of Chinese goods, due to be published in the
Federal Register next week.
    * GLENCORE: Glencore said trade barriers are its
"foremost risk", but climate, political, legal and other
potential dangers have become more pressing.
    * DGCX: The Dubai Gold & Commodities Exchange (DGCX) said on
Saturday it was launching two new base metal products, aluminium
futures and zinc futures.        
    * For the top stories in metals and other news, click       
 or     
        
    MARKETS NEWS    
    * Asian shares started the week on the front foot on signs
the United States and China were close to striking a tariff deal
to end their protracted trade war.
        
    PRICES
 BASE METALS PRICES                       0721 GMT
 Three month LME copper                       6459
 Most active ShFE copper                     49980
 Three month LME aluminium                    1909
 Most active ShFE aluminium                  13735
 Three month LME zinc                         2788
 Most active ShFE zinc                       22120
 Three month LME lead                       2148.5
 Most active ShFE lead                       17700
 Three month LME nickel                      13325
 Most active ShFE nickel                    104910
 Three month LME tin                         21630
 Most active ShFE tin                       150300
                                                  
 BASE METALS ARBITRAGE                            
 LME/SHFE COPPER              LMESHFCUc3    -318.8
 LME/SHFE ALUMINIUM           LMESHFALc3  -1044.82
                                          
 LME/SHFE ZINC                LMESHFZNc3   -203.44
 LME/SHFE LEAD                LMESHFPBc3    354.71
 LME/SHFE NICKEL              LMESHFNIc3  -1418.09
                                          
 ($1 = 6.6894 Chinese yuan)

 (Reporting by Muyu Xu and Tom Daly; editing by Richard Pullin
and Subhranshu Sahu)
  
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