METALS-Shanghai nickel hits near 4-month high on supply worries, firm demand


Updates prices as of 0735 GMT

BEIJING, Sept 4 (Reuters) - Shanghai nickel jumped on Monday to its highest in nearly four months, helped by rising ore prices, tightened supply from top producer Indonesia and firm demand from the stainless steel sector.

The most-traded October nickel contract on the Shanghai Futures Exchange SNIcv1 ended day-time trade 3% higher at 170,710 yuan ($23,489.18) per metric ton, after rising as much as 4.8% earlier to its highest since May 9 at 175,740 yuan.

Indonesia, which is the top exporter of nickel products to China, recently delayed issuing mining quotas, resulting in elevated prices and tightened supply of nickel ore.

"Issues of ore supply from Indonesia, together with better sentiment in China demand, pushed up nickel prices," said a Chinese trader.

China's stainless steel production, the main nickel-using sector, rose 33.5% in July from a year earlier, said CITIC Futures, adding more production was expected in the coming months due to a traditional strong demand season.

The most-traded stainless steel contract SHSSU3 also rallied recently, amid a broad rise in industrial goods as China rolled out more stimulus to boost its property and economy.

Meanwhile, a firm dollar weighed on the market. A stronger greenback makes dollar-denominated metals less affordable for buyers holding other currencies. FRX/

Three-month nickel on the London Metal Exchange CMNI3 lost 1.2% to $20,825 per metric ton, as of 0735 GMT.

Investors are now awaiting key U.S. services and Chinese trade and inflation data due out later in the week for further direction.

LME aluminium CMAL3 fell 1.2% to $2,210 a ton, zinc CMZN3 lost 0.5% to $2,472, lead CMPB3 slipped 1.2% to $2,221 and copper CMCU3 eased 0.5% to $8,459.50, while tin CMSN3 added 0.5% at $25,935.

SHFE aluminium SAFcv1 was down 1.2% to 18,965 yuan a ton, lead SPBcv1 eased 0.7% to 16,595 yuan, and copper SCFcv1 slipped 0.2% to 69,340 yuan, while tin SSNcv1 moved up 0.8% to 217,420 yuan and zinc SZNcv1 gained 0.6% to 21,220 yuan.

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($1 = 7.2676 Chinese yuan)

(Reporting by Siyi Liu and Dominique Patton; Editing by Subhranshu Sahu)


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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