By James Regan
SYDNEY, Aug 29 (Reuters) - Chinese nickel futures led most base metals higher on Tuesday, helped by a resurgent market for steel.
Nickel, chiefly used in making stainless steel, has been on a tear, rising 27 percent in price since early July on the Shanghai Futures Exchange.
“Nickel has supply issues that are still playing out and that’s helping, particularly when we see steel prices going up too,” said a commodities trader in Sydney.
* Three-month nickel on the London Metal Exchange was up 2.3 percent at $11,745 at 0700 GMT. At one point the contract rose to $11,840, the highest since Nov. 28, 2016, according to Thomson Reuters data.
* The most-traded nickel contract on the Shanghai Futures Exchange ended 1.3 percent firmer at 94,070 yuan ($14,254.54) a tonne.
* LME RESUMES: LME trading resumes on Tuesday following a holiday in Britain on Monday.
* ZINC RISES: ShFE zinc contract reversed the previous day’s loss and was up 0.02 percent, also aided by optimism in steel markets. Zinc is needed in steel galvanising. Lead, also found in steel, gained 0.37 percent.
* FRESH COPPER PEAK: Three-month LME copper was traded 2 percent higher at a fresh 34-month peak of $6,791 a tonne, amid signs of declining spare metal in warehouses.
COPPER INVENTORIES: weekly copper stocks in warehouses registered by the Shanghai Futures Exchange declined by 8.2 percent to 187,444 tonnes CU-STX-SGH. Meanwhile, on-warrant inventories - those not earmarked for removal - in LME depots have halved to 112,950 tonnes over the past six weeks MCUSTX-TOTAL, data last week showed.
* SHFE COPPER: ShFE copper gained 0.3 percent.
* GRASBERG PACT: Indonesia and Freeport-McMoRan Inc on Tuesday reached an agreement to allow the U.S. miner to keep operating its giant Grasberg copper and gold mine, though the timing and price of a 51 percent divestment in the mine still needs to be worked out.
* TRUMP DECLINES CHINA PROPOSAL: U.S. President Donald Trump last month rejected a Chinese proposal to cut steel overcapacity, despite the endorsement of some of his top advisers, the Financial Times said, citing people familiar with the matter.
* CHINA STEEL UP: the most-active rebar futures on the Shanghai Futures Exchange was trading 0.03 percent higher.
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
ARBS ($1 = 6.5993 Chinese yuan)
Reporting by James Regan; Editing by Jacqueline Wong and Amrutha Gayathri