August 12, 2019 / 4:17 AM / 3 months ago

METALS-Nickel gives up gains in volatile trade; zinc rises on Nyrstar outage

 (Updates prices, adds Nyrstar detail)
    BEIJING, Aug 12 (Reuters) - London nickel prices fell
sharply after an initial surge in volatile trade on Monday as
bulls that placed bets on Indonesia bringing forward a ban on
mineral ore exports moved to close their positions.
    The metal used to make stainless steel rose as much as 3.8%
in early trade. It then gave up gains and shed more than 3%
before steadying.
    Nickel had hit a 16-month high in London last Thursday, only
to shed 2.1% on Friday after Indonesia's trade minister,
Enggartiasto Lukita, said Jakarta was discussing bringing
forward the ban, which was previously set to come into force in
2022, but that no decision has been made.
    Initially, "funds went in and drove the price higher," said
Xu Maili, director of nonferrous metals research at Everbright
Futures in Shanghai. "Today, the bulls are closing their
positions and the price is correcting," he added.   
        
    FUNDAMENTALS
    * LME NICKEL: Three-month nickel on the London Metal
Exchange was down 1.3% at $15,360 a tonne as of 0741
GMT, below the 16-month high of $16,690 struck last Thursday. 
    * SHFE NICKEL The most-traded October nickel contract on the
Shanghai Futures Exchange plunged as much as 5.9%, the
biggest intraday drop since November 2017, to 118,510 yuan 
($16,782.79) a tonne and closed at 120,980 yuan.
    * VOLUMES: Trading volumes in the October ShFE nickel
contract reached just under 2.3 million lots, more than double
the 30-day average for a full day's trade.
    * COLUMN: Indonesian supply fears stoke brutal LME nickel
battle: Andy Home
    * ZINC: LME zinc bounced back from a 34-month low
early in the session to rise as much as 2.3% as Nyrstar
said it shut down its zinc-lead smelter furnace in Port Pirie,
Australia, after an incident.
    * OTHER METALS: London copper gained 0.7% to
$5,796.50 a tonne, while ShFE copper closed up 0.2%.
Shanghai aluminium ended up 2% after hitting its
highest since May 29 as traders worried about disruptions to
logistics in the smelter heartland of Shandong due to Typhoon
Lekima.
    * For the top stories in metals and other news, click       
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    MARKETS NEWS    
    * Worries that a prolonged Sino-U.S. trade war could tip the
world and U.S. economies into recession weighed on Asian
equities, offsetting a welcome a lift from Chinese shares and a
stronger-than-expected daily fixing for the yuan.   
       
    PRICES    
 BASE METALS PRICES                       0754 GMT
 Three month LME copper                     5793.5
 Most active ShFE copper                     46760
 Three month LME aluminium                  1788.5
 Most active ShFE aluminium                  14185
 Three month LME zinc                       2275.5
 Most active ShFE zinc                       18675
 Three month LME lead                         2095
 Most active ShFE lead                       16900
 Three month LME nickel                      15340
 Most active ShFE nickel                    120980
 Three month LME tin                         16900
 Most active ShFE tin                       133220
   
($1 = 7.0614 Chinese yuan)

 (Reporting by Tom Daly; editing by Richard Pullin and
Uttaresh.V)
  
 
 
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