* Shanghai lead surges to highest since 2013
* LME nickel below seven-week peak, tin hits 20-month high
* Coming up: U.S. pending home sales at 1400 GMT
(Adds BHP Olympic Dam copper mine shut, updates prices)
By Manolo Serapio Jr
MANILA, Sept 29 London lead futures climbed to
the highest since May last year on Thursday amid worries over
tighter supply in top market China and elsewhere, while nickel
slipped below seven-week highs with supply risks from top ore
exporter Philippines seen limited.
Lead futures in Shanghai jumped more than 3 percent to the
strongest level since 2013.
The supply of lead concentrate in China is "very tight and
the shortage may threaten production of primary lead smelters in
the fourth quarter," said Dina Yu, analyst at CRU consultancy in
Global mine shutdowns over the past year and moves by lead
producers to curb output amid low prices have tightened global
supply of the metal used to make batteries. Yu is looking at a
global deficit in lead concentrate of 146,000 tonnes this year
and a deficit of 29,000 tonnes in China.
That compared to last year's surplus of 117,000 tonnes in
China and 157,000 tonnes globally, she said. The upcoming winter
is usually a high season for battery replacement since extreme
cold weather typically causes failures.
Three-month lead on the London Metal Exchange was up
0.4 percent at $2,005 a tonne by 0717 GMT, extending gains for a
fourth consecutive session. The metal hit $2,023 earlier, its
strongest since May 2015.
On the Shanghai Futures Exchange, the most-traded lead
contract for November delivery closed up 2.2 percent at
15,005 yuan ($2,250) a tonne, after rising as far as 15,150
yuan, the highest since March 2013.
China's imports of lead ore and concentrate dropped 10
percent in January-August. Yu said China's stricter
environmental regulations had also curbed the output of smelters
that recycle lead ingot from batteries.
Nickel erased early gains on both LME and Shanghai, with
some analysts seeing limited supply risks after the Philippines
said on Tuesday it may suspend 20 more mines for environmental
The Philippines, which accounts for nearly a quarter of the
world's nickel mined supply, has already halted 10 mines, eight
of them nickel producers.
LME nickel dipped 0.4 percent to $10,650 a tonne,
down from Tuesday's seven-week top of $10,900. Shanghai nickel
ended 0.3 percent lower at 81,860 yuan a tonne after
earlier touching a seven-week high of 83,610 yuan.
Macquarie analysts say the disruption from the Philippines
to the global market may be capped at between 15,000 to 20,000
tonnes of nickel ore given the upcoming monsoon season which
limits mining and shipments there. Global nickel supply is seen
at 1.9 million tonnes this year, they said.
Elsewhere, LME copper edged up 0.2 percent to $4,828
a tonne. A power outage in South Australia state has halted
300,000 tonnes of annual copper production capacity from BHP
Billiton's Olympic Dam and Oz Minerals
Prominent Hill mines.
LME zinc was flat at $2,333.50 a tonne and tin
rose 0.6 percent to a fresh 20-month peak of $19,970 as
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Most active ShFE nickel
Three month LME tin
Most active ShFE tin
($1 = 6.6705 Chinese yuan)
(Reporting by Manolo Serapio Jr.; Editing by Ed Davies and