METALS-Nickel hits one-month high, aluminium rallies on China cuts

From Reuters - October 13, 2017

(Updates with official midday prices)

* Nickel hits months high at $11,680/T

* LME/ShFE arb:

* GRAPHIC-2017 metal returns:

By Maytaal Angel

LONDON, Oct 13 (Reuters) - Nickel prices hit a one-month high on Friday on concerns China might order further output cuts in the sector as it ramps up efforts to clean its skies, while aluminium rose on news a Chinese city had ordered capacity reductions.

The city of Binzhou, home to top global aluminium maker China Hongqiao Group, has ordered 2.57 million tonnes of annual smelting capacity to be closed this winter.

Chinas Communist Party Congress takes place next week and markets are growing concerned that Beijing will broaden efforts to eliminate more polluting mines and metal plants, especially during the winter months.

The China environmental cuts are definitely having an impact. The concern is it could spread across the industry. On the nickel side theres been reports we may see capacity cuts in nickel pig iron in China, said Warren Patterson, commodities strategist at ING.

The global economy is ticking along, Chinas come back from holidays a bit more bullish, every data point we see out of China, out of the U.S., out of Europe, looks fairly positive.


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