London nickel and copper futures edged back towards multi-week lows on Thursday, reflecting investor worries over a recent spate of data that showed China’s economy cooled in October. “The weak economic data in China earlier this week has sparked some concerns about demand for stainless steel and nickel in coming months,” ANZ analysts said in a report. “This was enough for investors to lock in some gains after the 20-percent rally in prices over the past couple of months.” FUNDAMENTALS * LME NICKEL: London Metal Exchange nickel had fallen 0.7 percent to $11,610 a tonne by 0725 GMT, extending a decline that began after the metal hit two-year highs at $13,030 on Nov. 1. * Nickel’s rally was driven by short-covering and investors anticipating potential battery sector demand, said CRU’s Peter Peng in Beijing. “Currently, the stainless steel market is weak as (there has been) too much supply since Q3, (so) nickel prices should fall back in line with real demand from stainless steel.” * LME COPPER: LME copper slipped 0.3 percent to $6,753 a tonne. That was only slightly higher than the $6,713 touched on Wednesday, the weakest since Oct. 10. * SHFE COPPER: Shanghai Futures Exchange copper lost 0.7 percent to 52,810 yuan ($7,958) a tonne. * OTHER SHANGHAI METALS: Shanghai nickel slid 2.6 percent and lead fell 1.5 percent, in line with recent weakness in steel on worries that Chinese demand may be cooling heading into a seasonally lower period of consumption. Zinc , which has been supported by supply concerns, dropped a more modest 0.8 percent. * CHINA DATA: Data released on Tuesday showed China’s economy cooled further last month, with industrial output, fixed asset investment and retail sales missing expectations as the government extended a crackdown on debt risks and factory pollution. * DOLLAR: The dollar was on the defensive as doubts for the prospects of U.S. tax reforms, a fall in U.S. stocks, and declining high-yield bond prices all soured the mood, offsetting an uptick in underlying U.S. inflation. * INVESTORS: Barclays says total commodity investor assets under management have trended steadily higher and are now in excess of $300 billion for the first time since 2013. * CHINA: China’s banking regulator has set new rules for the country’s three policy banks to help rein in risks amid a broader tightening of controls over the financial sector. PRICES BASE METALS PRICES 0725 GMT Three month LME copper 6752.5 Most active ShFE copper 52820 Three month LME aluminium 2110 Most active ShFE aluminium 15475 Three month LME zinc 3134 Most active ShFE zinc 25020 Three month LME lead 2419 Most active ShFE lead 18510 Three month LME nickel 11610 Most active ShFE nickel 94050 Three month LME tin 19420 Most active ShFE tin 143110 BASE METALS ARBITRAGE LME/SHFE COPPER LMESHFCUc3 557.42 LME/SHFE ALUMINIUM LMESHFALc3 -791.28 LME/SHFE ZINC LMESHFZNc3 430.24 LME/SHFE LEAD LMESHFPBc3 -897.45 LME/SHFE NICKEL LMESHFNIc3 2675.14 Source: Reuters Pipe Industry Co., Limited (www.wilsonpipeline.com)
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