November 23, 2017 / 5:11 AM / a year ago

METALS-Shanghai aluminium snaps four-day losing streak

 (Adds ShFE closing prices, updates LME prices)
    BEIJING, Nov 23 (Reuters) - Shanghai aluminium prices rose
by 0.6 percent on Thursday, ending a four-day losing run despite
some lingering bearish sentiment on the metal.  
    Aluminium is still down by 8.3 percent in Shanghai so far
this month, as Chinese winter smelting restrictions in force
from mid-November turned out to be less severe than the market
expected. It remains up by 10.9 percent year-to-date. 
    "Supply-side reforms in the Chinese aluminium smelting
sector are accelerating, and environmental regulations are
further limiting output," Societe Generale analysts wrote in a
2018 commodities outlook, forecasting that prices would average
$2,075 a tonne in six months.
    Global aluminium demand will rise by 5 percent next year and
the market "will shift into a deficit for the first time in over
a decade", they added.
    * SHFE ALUMINIUM: The most-traded aluminium contract on the
Shanghai Futures Exchange closed up 0.6 percent at
15,005 yuan ($2,275.48) a tonne, having finished below 15,000
yuan a tonne on Wednesday for the first time since Aug. 1.
    * GETTING TECHNICAL: ShFE aluminium closed below its 200-day
moving average on Tuesday for the first time in more than 18
months, sending a sell signal to chart-following funds. 
    * OPEN INTEREST: Market open interest in the ShFE aluminium
contract fell to 790,710 lots on Wednesday, its lowest level
since early August. 
    * LME ALUMINIUM: On the London Metal Exchange, three-month
aluminium was down 0.2 percent at $2,103 a tonne by 0733
GMT amid quiet trade due to the Thanksgiving holiday in the
United States. It has lost less than 3 percent this month.  
    * COPPER: Three-month copper on the LME was down 0.4
percent at $6,923.50 a tonne, having gained 0.7 percent in the
previous session. The ShFE's most-traded copper
contract ended down 0.2 percent at 53,850 yuan a tonne.
    * OTHER METALS: Lead fell furthest in the base metals
complex, closing down 2.9 percent in Shanghai and losing 1.2
percent in London. Zinc was the only other in the red, inching
up 0.1 percent in Shanghai, but down 0.1 percent in London.
    * LME WAIVERS: The LME said on Wednesday it had agreed a
range of waivers and discounts to assuage its members when it
starts to charge a fee on off-exchange, over-the-counter (OTC)
contracts that reference its prices. 
    * INDIA: SBI Life Insurance Co. Ltd has increased
investments in the metals, oil and gas sectors as a rise in
energy and metals prices is set to drive growth in commodity
stocks, the insurer's chief investment officer told Reuters.

    * CHILE: The world's largest copper miner, Codelco, may see
a boost in investment cash regardless of who wins next month's
presidential runoff in Chile, as both candidates have vowed to
end the state-run firm's funding of the military.
* For the top stories in metals and other news, click       
    * Chinese shares tumbled on Thursday with the blue-chip
index suffering its worst fall in nearly 1-1/2 years as worries
about a selloff in the bond market bled into equities.

 BASE METALS PRICES                       0733 GMT
 Three month LME copper                     6923.5
 Most active ShFE copper                     53850
 Three month LME aluminium                    2103
 Most active ShFE aluminium                  15005
 Three month LME zinc                         3222
 Most active ShFE zinc                       25550
 Three month LME lead                         2435
 Most active ShFE lead                       18300
 Three month LME nickel                      11715
 Most active ShFE nickel                     94230
 Three month LME tin                         19380
 Most active ShFE tin                       141700
 BASE METALS ARBITRAGE                            
 LME/SHFE COPPER              LMESHFCUc3    572.07
 LME/SHFE ALUMINIUM           LMESHFALc3  -1129.35
 LME/SHFE ZINC                LMESHFZNc3    408.14
 LME/SHFE LEAD                LMESHFPBc3    -956.3
 LME/SHFE NICKEL              LMESHFNIc3   2707.09

($1 = 6.5942 Chinese yuan renminbi)

 (Reporting by Tom Daly; Editing by Joseph Radford and Richard
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