November 30, 2018 / 5:18 AM / 15 days ago

METALS-Shanghai aluminium hits new 2-yr low, posts third straight monthly drop

 (Adds Shanghai closing prices, updates London prices)
    BEIJING, Nov 30 (Reuters) - Chinese aluminium prices fell to
their lowest in more than two years on Friday and clocked a
third successive monthly decline, as stalling manufacturing
growth compounded plentiful supply amid relatively lenient
winter output curbs.
    China's official Purchasing Managers' Index (PMI) fell to 50
in November, missing market expectations and down from 50.2 in
October.
    Shanghai aluminium shed 2.8 percent over November, which saw
two-year lows hit several times, leaving smelters in China
struggling to turn a profit and leading some to cut output even
without being ordered to do so on environmental grounds. 
    Despite the poor PMI data, other metals rose on end-of-month
short covering ahead of the meeting between the presidents of
China and the United States at the G20 in Argentina.
    In China, "we are moving into an 'all bad news is good news'
scenario as a multi-lever policy response is now expected," John
Browning, managing director of Bands Financial, wrote in a note.
     FUNDAMENTALS
    * ALUMINIUM: The most traded January aluminium contract on
the Shanghai Futures Exchange fell as much as 1 percent
to 13,535 yuan ($1,949.39) a tonne, the lowest since Oct. 10,
2016, before closing on 13,555 yuan. 
    * ALUMINIUM: Norwegian metals maker Norsk Hydro
expects global primary aluminium demand growth to slow next year
and says it is being impacted "heavily" by an output slowdown at
a key alumina plant in Brazil.
    * COPPER: Three-month copper on the London Metal Exchange
 edged up 0.3 percent to $6,229.50 a tonne by 0707 GMT,
heading for a monthly rise of 4 percent, while ShFE copper
closed up 0.4 percent at 49,720 yuan a tonne.
    * CODELCO: Chile's Codelco, the world's largest copper
producer, said mine output fell 3 percent in the first nine
months of the year as ore grades sharply declined.
    * OTHER METALS: Shanghai zinc and nickel
performed best, closing up 2.3 percent and 1.9 percent,
respectively, on Friday. ShFE zinc ended November down 3.3
percent, its first monthly drop in four, while nickel lost 7.5
percent for its worst month since September 2017.
    * SHFE STOCKS: Aluminium inventories in warehouses monitored
by the ShFE AL-STX-SGH fell by 19,099 tonnes, or 2.5 percent,
week-on-week to 731,130 tonnes, the exchange said on Friday.
Zinc stocks ZN-STX-SGH were down 24.5 percent to 26,779
tonnes, the lowest since 2007.
    
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    MARKETS NEWS
    * Asian shares wavered on Friday as investors were on edge
before a crucial weekend meeting between the Chinese and U.S.
presidents that could determine the course of a heated trade war
over the next year.
        
       
    PRICES
 BASE METALS PRICES                        0716 GMT
 Three month LME copper                      6227.5
 Most active ShFE copper                      49720
 Three month LME aluminium                     1935
 Most active ShFE aluminium                   13555
 Three month LME zinc                          2488
 Most active ShFE zinc                        20685
 Three month LME lead                          1942
 Most active ShFE lead                        18280
 Three month LME nickel                       11085
 Most active ShFE nickel                      91300
 Three month LME tin                          18595
 Most active ShFE tin                        143580
                                                   
 BASE METALS ARBITRAGE                             
 LME/SHFE COPPER              LMESHFCUc3    -545.22
 LME/SHFE ALUMINIUM           LMESHFALc3   -1959.99
 LME/SHFE ZINC                LMESHFZNc3     -67.04
 LME/SHFE LEAD                LMESHFPBc3    1608.27
 LME/SHFE NICKEL              LMESHFNIc3     641.57
 ($1 = 6.9432 Chinese yuan)

    
 (Reporting by Tom Daly; editing by Sai Sachin Ravikumar and
Rashmi Aich)
  
 
 
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