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METALS-London nickel slides more than 2 percent

METALS-London nickel slides more than 2 percent
From Reuters - November 8, 2017

 (Updates prices)
By Melanie Burton
MELBOURNE, Nov 9 (Reuters) - London nickel fell by more than
2 percent on Thursday to its weakest since October as hype over
potential electric vehicle demand that drove last week's rally
died down. 
The nickel market had been ignoring downside risks from
policy developments in Indonesia and the Philippines, and
instead was focusing on potential future demand from electric
vehicle batteries, said Morgan Stanley in a report. 
"We (have) heard little to alter our view that producing
NiSO (nickel sulphate) is not particularly challenging/costly and
we see near-term downside risk to price," it said. 
The bank expects annual demand for nickel from the EV sector
to grow to 300,000 tonnes by 2025. FUNDAMENTALS
* NICKEL: London nickel fell by 2.5 percent in its
biggest one-day slide since September, while Shanghai Futures
Exchange nickel dropped 2.2 percent. Traders said
prices were correcting after they surged by 10 percent across an
industry week in London last week. 
* CHINA: Appetite for nickel has been driven up as battery
makers increasingly turn to the base metal to help power global
electric car sales. Demand for nickel will outstrip global
supply for the third year in a row in 2018, according to Chinese
state-backed research firm Antaike.
* COPPER: London Metal Exchange copper eased by 1
percent to $6,789.50 a tonne by 0707 GMT, erasing a small gain
from the previous session. It matched its trough from Wednesday
at $6,780, which was its lowest since Oct. 11. ShFE copper
 also slipped 1 percent to 53,230 yuan ($8,026) a tonne.
* SHFE ALUMINIUM: Shanghai aluminium fell 2.7
percent to its weakest since early August amid speculation that
China's war on pollution could also hit manufacturers of
aluminium products and curb demand. 
* CHINA INFLATION: China's producer prices were surprisingly
strong in October, while consumer inflation picked up pace,
suggesting the world's second-largest economy remains robust
despite expected curbs on factory output as the government
pursues a punishing war on smog.
* JAPAN: Japan's core machinery orders tumbled in September,
a decline that companies expect to continue into
October-December in a sign that business investment is losing
momentum.
* NICKEL: Brazil's miner Vale SA said on
Wednesday it had received bids to invest in its New Caledonia
nickel project as the company re-evaluates its nickel
business.
* POLL: Resurgent industrial metals prices, powered by
enthusiasm for the electric vehicle (EV) revolution and a
Chinese pollution crackdown are starting to look overcooked -
raising the risk of a correction next year, a Reuters poll
showed.
* COMING UP: Germany Trade data for Sep
 
PRICES BASE METALS PRICES0703
 Three month LME copper6789.5
 Most active ShFE copper53230
 Three month LME aluminium2095
 Most active ShFE aluminium15475
 Three month LME zinc3176.5
 Most active ShFE zinc25495
 Three month LME lead2499.5
 Most active ShFE lead18855
 Three month LME nickel12380
 Most active ShFE nickel99110
 Three month LME tin19450
 Most active ShFE tin142060 BASE METALS ARBITRAGE
 LME/SHFE COPPERLMESHFCUc3622.89
 LME/SHFE ALUMINIUMLMESHFALc3-646.35
 LME/SHFE ZINCLMESHFZNc3607.97
 LME/SHFE LEADLMESHFPBc3-1127.82
 LME/SHFE NICKELLMESHFNIc31955.07
 ($1 = 6.6318 Chinese yuan) (Reporting by Melanie Burton; Editing by Tom Hogue and Sunil
Nair) 
 

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